Simpson Thacher represented the initial purchasers in connection with a 144A/Regulation S offering of $1.1 billion aggregate principal amount of 4.125% Senior Notes due 2029 and $1 billion aggregate principal amount of 4.375% Senior Notes due 2031 by DT Midstream, Inc. (“DT Midstream”), the new independent, publicly traded company that is expected to be formed through the planned spin-off of DTE Energy Company’s (“DTE Energy”) non-utility natural gas pipeline, storage and gathering business. The notes are guaranteed on a senior unsecured basis by certain of DT Midstream’s subsidiaries.
Simpson Thacher also represented the joint lead arranger, joint bookrunner and administrative agent, in connection with DT Midstream’s new senior secured credit facilities consisting of a $1 billion term loan facility and a $750 million revolving credit facility.
DT Midstream intends to use the net proceeds from the notes offering, together with borrowings under the new term loan facility, for the repayment of intercompany obligations due to DTE Energy and the payment of a dividend to DTE Energy. DT Midstream intends to use the proceeds of the new revolving credit facility for general corporate purposes.
DT Midstream is an owner, operator and developer of natural gas midstream interstate and intrastate pipelines; storage and gathering systems; and compression, treatment and surface facilities. DT Midstream provides clean, natural gas to gas and electric utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern and Midwestern United States and into Canada. DT Midstream provides a comprehensive, wellhead-to-market array of services, including natural gas transportation, storage and gathering.
The Simpson Thacher team included Hui Lin, Ken Wallach, Matt Petrone and Anna Jarman (Capital Markets); Alexandra Kaplan, Erland Modesto, Zachary Banks, Dylan Benac and Isaac Syed (Credit); Sophie Staples, Lina Pan and Stefan Golubovic (Tax); Melanie Jolson (Intellectual Property); Dennis Loiacono and Timothy Gallagher (Real Estate); Jennifer Neilsson and Pasco Struhs (Executive Compensation and Employee Benefits); Adeeb Fadil, Tim Mulvihill and Michael Isby (Environmental); and Andrew Pagliughi (Blue Sky).