8-KMaterial AgreementsExhibits & Filings

DTE ENERGY CO 8-K Report, Material Agreement (Dec 21, 2006)

Filed December 21, 2006For Securities:DTEDTKDTBDTGDTW

Summary

DTE Energy Company (DTE) filed an 8-K on December 21, 2006, detailing an amendment to its letter of credit and reimbursement agreement. The amendment, effective December 15, 2006, extended the expiration date of the agreement from December 15, 2006, to December 14, 2007. This extension provides DTE Energy with continued access to liquidity for an additional year. Importantly, the amendment also resulted in a significant reduction of the credit facility amount from $150,000,000 to $43,380,000. Investors should note this substantial decrease, which may indicate a change in the company's short-term financing needs or strategy. The full details of the amendment are available as an exhibit to this filing.

Key Highlights

  • 1DTE Energy amended its existing $150 million letter of credit and reimbursement agreement.
  • 2The amendment extends the agreement's expiration date by one year, from December 15, 2006, to December 14, 2007.
  • 3The total amount of the letter of credit facility was significantly reduced from $150,000,000 to $43,380,000.
  • 4The amendment was entered into on December 15, 2006.
  • 5The Bank of Nova Scotia (Scotia Capital) continues to serve as the Administrative Agent.
  • 6The filing includes the Form of Amendment No. 1 as an exhibit.
  • 7The amendment suggests a revised approach to short-term credit needs or liquidity management by DTE Energy.

Frequently Asked Questions

The main purpose of this 8-K filing is to report a material definitive agreement, specifically an amendment to DTE Energy's letter of credit and reimbursement agreement.

The letter of credit facility's expiration has been extended by one year to December 14, 2007. However, the total amount available under the facility has been significantly reduced from $150,000,000 to $43,380,000.

The reduction in the letter of credit facility amount could be due to several reasons. DTE Energy may have reduced its short-term borrowing needs, secured alternative financing, or is adjusting its capital structure. Investors should monitor future filings for more context on the company's liquidity and financing strategies.

The Bank of Nova Scotia (Scotia Capital) continues to act as the Administrative Agent for the amended agreement.