Summary
DTE Energy Company, through its subsidiary DTE Electric Company, has entered into a new financing arrangement. On April 5, 2013, DTE Electric executed a second amended and restated five-year unsecured revolving credit agreement, establishing an aggregate availability of $300 million. This facility, which expires in April 2018, will support the company's commercial paper borrowings and is subject to a debt to capitalization ratio not exceeding 0.65 to 1. The primary purpose of this filing is to disclose the creation of this new material definitive agreement, which effectively replaces and terminates a prior credit agreement from October 21, 2011. At the time of the filing, DTE Electric had no outstanding borrowings under the new facility, indicating a strong liquidity position. Investors can view this as a proactive step by management to ensure access to funding and maintain financial flexibility.
Key Highlights
- 1DTE Electric Company entered into a $300 million five-year unsecured revolving credit agreement on April 5, 2013.
- 2The new credit facility expires in April 2018.
- 3The agreement requires DTE Electric to maintain a debt to capitalization ratio of no more than 0.65 to 1.
- 4The facility is intended to support DTE Electric's commercial paper borrowings.
- 5The new credit agreement replaces a previous agreement dated October 21, 2011.
- 6At the time of the filing, there were no outstanding borrowings under the new credit facility.
- 7Barclays Bank PLC serves as the Administrative Agent, with Citibank, N.A., JPMorgan Chase Bank, N.A., and The Royal Bank of Scotland plc as Co-Syndication Agents.