DT Midstream, Inc. announced on September 26, 2024, that its joint venture, Millennium Pipeline Company, LLC, closed on a private placement of $800 million in senior unsecured notes. Millennium Pipeline, in which DT Midstream holds a 52.5% interest, secured these notes with a weighted-average coupon rate of 5.88%.
Following the closing of this private placement, DT Midstream received a pro rata distribution of $420 million from Millennium Holdings, after accounting for fees and expenses. This cash inflow provides a significant boost to the company's liquidity.
DT Midstream stated its intention to utilize the net proceeds from this distribution to repay all outstanding borrowings under its Term Loan Facility. This move is expected to strengthen the company's balance sheet and improve its overall financial flexibility by reducing its debt obligations.
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