8-KMaterial AgreementsFinancial EventsExhibits & Filings

DTE ENERGY CO 8-K Report, Material Agreement (Apr 9, 2013)

Filed April 9, 2013For Securities:DTEDTKDTBDTGDTW

Summary

DTE Energy Company (DTE) announced on April 5, 2013, that it and its subsidiary DTE Gas Company have entered into new, amended, and restated five-year unsecured revolving credit agreements. These new agreements replace previously existing credit facilities and collectively provide substantial borrowing capacity for both the parent company and its subsidiary. The primary objective of these agreements is to ensure continued access to liquidity and support commercial paper borrowings. For DTE Energy, the new facility offers an aggregate availability of $1.2 billion, while DTE Gas has secured $300 million. Both agreements carry a debt-to-capitalization ratio covenant of no more than 0.65 to 1 and mature in April 2018. At the time of the filing, no borrowings were outstanding under the new facilities, though letters of credit were transferred.

Key Highlights

  • 1DTE Energy and DTE Gas entered into new five-year unsecured revolving credit agreements on April 5, 2013.
  • 2DTE Energy's new credit facility has an aggregate availability of $1.2 billion.
  • 3DTE Gas' new credit facility has an aggregate availability of $300 million.
  • 4These new agreements replace and terminate previous credit facilities dated October 21, 2011.
  • 5The credit facilities will support commercial paper borrowings and provide general liquidity.
  • 6Both agreements require the maintenance of a debt to capitalization ratio of no more than 0.65 to 1.
  • 7The new credit facilities expire in April 2018.

Frequently Asked Questions

The primary purpose is to provide DTE Energy and its subsidiary DTE Gas with continued access to liquidity, support their commercial paper programs, and ensure financial flexibility for their operations. They are an amendment and restatement of existing facilities, signifying a refinancing rather than new debt.

DTE Energy has an aggregate availability of $1.2 billion under its new five-year unsecured revolving credit agreement. Its subsidiary, DTE Gas, has a separate agreement providing $300 million in availability.

Yes, both DTE Energy and DTE Gas are required to maintain a debt to capitalization ratio of no more than 0.65 to 1 under their respective credit agreements.

No, at the time of the filing on April 5, 2013, DTE Energy did not have any borrowings outstanding under the new $1.2 billion credit facility. However, $65 million in letters of credit were transferred from the previous facility to the new one.