Item 1.01. Entry into a Material Definitive Agreement.
On October 21, 2011, DTE Energy Company (“DTE Energy”) entered into an amended and restated five-year unsecured revolving credit agreement by and among DTE Energy, the lenders party thereto, Citibank, N.A. (“Citibank”), as Administrative Agent, and Barclays Capital (“Barclays”), The Bank of Nova Scotia (“Bank of Nova Scotia”) and JPMorgan Chase Bank, N.A. (“JPMorgan”), as Co-Syndication Agents. DTE Energy’s aggregate availability under the five-year facility is $1,100,000,000. Borrowings under the five-year facility will be available at prevailing short-term interest rates. The five-year facility will also support DTE Energy’s commercial paper borrowings. The five-year facility expires in October 2016 and requires the maintenance of a debt to capitalization ratio of no more than .65 to 1.
On October 21, 2011, Michigan Consolidated Gas Company, a wholly-owned subsidiary of DTE Energy (“MichCon”), entered into an amended and restated five-year unsecured revolving credit agreement by and among MichCon, the lenders party thereto, JPMorgan, as Administrative Agent, and Barclays, Citibank and Bank of America, N.A (“Bank of America”), as Co-Syndication Agents. MichCon’s aggregate availability under the five-year facility is $400,000,000. Borrowings under the five-year facility will be available at prevailing short-term interest rates. The five-year facility will also support MichCon’s commercial paper borrowings. The five-year facility expires in October 2016 and requires the maintenance of a debt to capitalization ratio of no more than .65 to 1.
Item 1.02. Termination of a Material Definitive Agreement.
Effective October 21, 2011, DTE Energy terminated the Three-Year Credit Agreement and the Amended and Restated Two-Year Credit Agreement both dated as of August 20, 2010, by and among DTE Energy, the lenders party thereto and Citibank, as Administrative Agent. DTE Energy terminated these credit facilities because they have been replaced with the new DTE Energy five-year credit facility, dated as of October 21, 2011, as discussed under Item 1.01 above.
Effective October 21, 2011, MichCon terminated the Three-Year Credit Agreement and the Amended and Restated Two-Year Credit Agreement both dated as of August 20, 2010, by and among MichCon, the lenders party thereto and JPMorgan, as Administrative Agent. MichCon terminated these credit facilities because they have been replaced with the new MichCon five-year credit facility, dated as of October 21, 2011, as discussed under Item 1.01 above.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
As discussed under Item 1.01 above, on October 21, 2011, DTE Energy entered into an amended and restated five-year credit agreement for borrowings up to approximately $1,100,000,000. DTE Energy transferred $104,000,000 in letters of credit outstanding under the terminated facilities and does not have any other borrowings under the facility at this time.
