Revolving credit http://fimendurance.com/ Mon, 23 May 2022 16:27:57 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 https://fimendurance.com/wp-content/uploads/2021/10/icon-5-120x120.png Revolving credit http://fimendurance.com/ 32 32 Huntsman (HUN) Announces $1.2 Billion Revolving Credit Facility – May 23, 2022 https://fimendurance.com/huntsman-hun-announces-1-2-billion-revolving-credit-facility-may-23-2022/ Mon, 23 May 2022 15:00:38 +0000 https://fimendurance.com/huntsman-hun-announces-1-2-billion-revolving-credit-facility-may-23-2022/ Hunter’s Society (Quick quote HUNHUN – Free Report) recently announced that its wholly owned subsidiary, Huntsman International LLC, has entered into a new $1.2 billion sustainability-related senior unsecured revolving credit facility. This replaces the existing $1.2 billion senior unsecured revolving credit facility which expires in May 2023. The facility is expected to mature on May […]]]>

Hunter’s Society (HUN Free Report) recently announced that its wholly owned subsidiary, Huntsman International LLC, has entered into a new $1.2 billion sustainability-related senior unsecured revolving credit facility. This replaces the existing $1.2 billion senior unsecured revolving credit facility which expires in May 2023.

The facility is expected to mature on May 20, 2027, and has better terms and lower fees. It also plans to extend the maturity for up to two more years and increase the size of the facility by $500 million. Its sustainability-related attribute includes changes to the commitment fee and borrowing rate tied to the company’s performance in reducing intensity for both greenhouse gas emissions and water consumption.

Huntsman said he is proud of his role in creating a more sustainable future. The company noted that tying its revolving credit facility to sustainable development goals supports its commitment to providing innovative solutions for a low-carbon and more sustainable economy.

Shares of Huntsman are up 24% over the past year, compared to an industry decline of 9.2%.

Image source: Zacks Investment Research

The company, in its latest earnings call, said it expects continued strong results in the second quarter of 2022. It expects to complete the Geismar MDI separator project in June 2022, which will expand the differentiated activity of polyurethanes in the Americas. It anticipated the strength of the balance sheet and expected cash flows to provide flexibility and allow it to return cash to shareholders.

Zacks ranking and other key picks

Huntsman currently sports a Zacks rank #1 (Strong Buy).

Some other top-ranked stocks in the base materials space are Allegheny Technologies Inc. (ATI free report), Albemarle Society (ALB free report) and Cabot Corporation (CCT free report).

Allegheny forecasts a profit growth rate of 869.2% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 27.3% in the past 60 days.

Allegheny’s earnings have exceeded Zacks’ consensus estimate in each of the past four quarters. It has a surprise on earnings for the last four quarters of about 128.9% on average. ATI has gained about 6.2% in one year and currently sports a #1 Zacks ranking. You can see the full list of today’s Zacks #1 Rank stocks here.

Albemarle forecasts a profit growth rate of 175% for the current year. The Zacks consensus estimate for ALB’s current-year earnings has been revised up 85.8% in the past 60 days.

Albemarle’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 22.5%. ALB gained 48.2% in one year. The company boasts a No. 1 Zacks rank.

Cabot, who currently carries a No. 2 Zacks rank, has an expected earnings growth rate of 21.5% for the current year. The Zacks consensus estimate for CBT earnings for the current year has been revised up 5.2% in the past 60 days.

Cabot’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 16.2%. CBT gained around 9.7% year on year.

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Phillips Edison & Company raises unsecured revolver to $800 million https://fimendurance.com/phillips-edison-company-raises-unsecured-revolver-to-800-million/ Fri, 20 May 2022 20:16:01 +0000 https://fimendurance.com/phillips-edison-company-raises-unsecured-revolver-to-800-million/ Phillips Edison & Company, Inc. (Nasdaq: CEE) (“PECO” or the “Company”), one of the largest owners and operators of grocery-anchored omnichannel neighborhood shopping centers, today announced that it has amended its credit facility agreement (the “Amendment”) to, among other things, increase revolving credit commitments by $300 million under its revolving credit facility, bringing the total […]]]>

Phillips Edison & Company, Inc. (Nasdaq: CEE) (“PECO” or the “Company”), one of the largest owners and operators of grocery-anchored omnichannel neighborhood shopping centers, today announced that it has amended its credit facility agreement (the “Amendment”) to, among other things, increase revolving credit commitments by $300 million under its revolving credit facility, bringing the total revolving credit commitment to $800 million. The revolving credit facility is expected to mature in January 2026, with options available to extend the maturity to January 2027. The Company may increase the capacity of the revolving credit facility to $1.0 billion with a feature accordion, subject to further syndication.

In addition to increasing borrowing capacity, the Amendment replaces LIBOR with SOFR as the benchmark interest rate for the revolving credit facility. The amendment also replaces LIBOR with SOFR on the two $240 million senior unsecured term loan tranches maturing in 2025 and 2026, respectively. The pricing grid, which sets the spread based on CEE’s investment grade debt rating, remains unchanged.

PNC Capital Markets LLC and KeyBank Capital Markets acted as joint bookrunners and co-lead arrangers for the revolving credit facility along with other co-lead arrangers, including BOFA Securities, Inc.; JPMorgan Chase Bank, North America; and Wells Fargo Securities, LLC. PNC Bank, National Association serves as administrative agent and KeyBank National Association; Bank of America, North America; JPMorgan Chase Bank, North America; and Wells Fargo Bank, National Association are acting as co-syndication agents. Morgan Stanley Senior Funding, Inc.; Capital One, National Association; Fifth Third Bank, National Association; Bank of Regions; and BMO Harris Bank, NA are acting as joint documentation agents. US Bank National Association and Mizuho Bank, Ltd. also participate in the transaction. PNC Capital Markets LLC serves as sustainability agent.

“The increased capacity of our revolver enhances our ability to fund our growth initiatives while giving us additional flexibility regarding when we access capital markets,” said John Caulfield, Chief Financial Officer and Treasurer. “We appreciate the continued and expanded support of our lending partners as we continue to successfully grow our grocery-anchored shopping center portfolio.”

About Phillips Edison & Company

Phillips Edison & Company, Inc. (“PECO”), an internally managed REIT, is one of the largest owners and operators of grocery-anchored shopping centers in the United States. Founded in 1991, PECO has generated strong results through its vertically integrated operating platform and nationwide footprint of busy shopping centers. PECO Centers feature a mix of national and regional retailers providing essential goods and services to fundamentally strong markets across the United States. Major CEE grocery stalwarts include Kroger, Publix, Ahold Delhaize and Albertsons. As of March 31, 2022, PECO operates 290 shopping centers, including 269 wholly owned centers comprising 30.8 million square feet in 31 states, and 21 shopping centers owned in two institutional joint ventures. PECO is exclusively focused on creating omnichannel shopping experiences rooted in grocery and improving communities, one mall at a time.

PECO uses, and intends to continue to use, its website for investors, which can be accessed at https://investors.phillipsedison.comas a means of disclosing material nonpublic information and complying with its disclosure obligations under Regulation FD.

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AM Best Assigns Issue Credit Ratings to UnitedHealth Group Incorporated Senior Unsecured Notes https://fimendurance.com/am-best-assigns-issue-credit-ratings-to-unitedhealth-group-incorporated-senior-unsecured-notes/ Wed, 18 May 2022 21:28:00 +0000 https://fimendurance.com/am-best-assigns-issue-credit-ratings-to-unitedhealth-group-incorporated-senior-unsecured-notes/ OLDWICK, NJ, May 18, 2022–(BUSINESS WIRE)–AM Best has assigned long-term credit ratings (long-term IR) of “a” (Excellent) to UnitedHealth Group Incorporated (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH] recently issued $600 million of 3.7% senior unsecured notes due 2027; $900 million of 4% senior unsecured notes due 2029; $1.5 billion of 4.2% senior unsecured notes, due […]]]>

OLDWICK, NJ, May 18, 2022–(BUSINESS WIRE)–AM Best has assigned long-term credit ratings (long-term IR) of “a” (Excellent) to UnitedHealth Group Incorporated (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH] recently issued $600 million of 3.7% senior unsecured notes due 2027; $900 million of 4% senior unsecured notes due 2029; $1.5 billion of 4.2% senior unsecured notes, due 2032; $2 billion of 4.75% senior unsecured notes, due 2052; and $1.0 billion 4.95% senior unsecured notes due 2062. The outlook assigned to these credit ratings (ratings) is stable. UnitedHealth Group’s issuer long-term credit rating of “a” (Excellent), its long-term IRs and the ratings of its insurance subsidiaries are unchanged.

Proceeds from this issuance are expected to be used to repay outstanding commercial paper, $1 billion of 3.35% senior unsecured notes due July 2022 and $900 million of 2.375% senior unsecured notes. % due October 2022, as well as for other general corporate purposes. UnitedHealth Group had $3.2 billion of commercial paper outstanding as of March 31, 2022. Following the repayment of the commercial paper and upcoming maturities, AM Best expects the issuance to be neutral to the adjusted leverage ratio of the group, which measured 36.2% as of March 31. , 2022.

UnitedHealth Group has managed its leverage within a 40% range over the long term, with fluctuations following major acquisitions. AM Best expects the group’s adjusted financial leverage to remain below 40% at the end of 2022, following the completion of the two pending acquisitions, Change Healthcare and LHC Group Inc. The organization maintains a strong earnings before interest and taxes. two-digit digits. UnitedHealth Group has excellent liquidity thanks to parent company treasury, insurance subsidiary’s dividend capacity, unregulated cash flow, commercial paper program and $15 billion revolving credit facility of dollars. A steady stream of revenue development and earnings growth has driven a strong operating performance trend over the past few years, supported by UnitedHealth Group’s operations at UnitedHealthcare Insurance and at Optum. The organization expects this growth to continue in the medium term.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220518006139/en/

contacts

Antonietta Iachetta
Senior Financial Analyst
+1 908 439 2200 ext. 5792
antonietta.iachetta@ambest.com

Doniella Pliss
Director
+1 908 439 2200 ext. 5104

doniella.pliss@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200 ext. 5159
christopher.sharkey@ambest.com

Jeff Mango
General director,
Strategy & Communication
+1 908 439 2200 ext. 5204
jeffrey.mango@ambest.com

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Hancock Whitney (NASDAQ:HWC) vs. Byline Bancorp (NYSE:BY) Financial Investigation https://fimendurance.com/hancock-whitney-nasdaqhwc-vs-byline-bancorp-nyseby-financial-investigation/ Sun, 15 May 2022 22:11:04 +0000 https://fimendurance.com/hancock-whitney-nasdaqhwc-vs-byline-bancorp-nyseby-financial-investigation/ Hancock Whitney (NASDAQ:HWC – Get a rating) and Byline Bancorp (NYSE: BY – Get a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on valuation strength, profitability, dividends, risk, institutional ownership, earnings, and analyst recommendations. Benefits and evaluation This table compares revenue, earnings per share and valuation […]]]>

Hancock Whitney (NASDAQ:HWCGet a rating) and Byline Bancorp (NYSE: BYGet a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on valuation strength, profitability, dividends, risk, institutional ownership, earnings, and analyst recommendations.

Benefits and evaluation

This table compares revenue, earnings per share and valuation of Hancock Whitney and Byline Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Hancock Whitney $1.35 billion 2.98 $463.21 million $5.41 8.57
Parline Bancorp $323.18 million 2.72 $92.79 million $2.42 9.60

Hancock Whitney has higher revenue and profit than Byline Bancorp. Hancock Whitney is trading at a lower price-to-earnings ratio than Byline Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Hancock Whitney and Byline Bancorp.

Net margins Return on equity return on assets
Hancock Whitney 36.08% 14.18% 1.42%
Parline Bancorp 28.40% 12.96% 1.57%

Risk and Volatility

Hancock Whitney has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. In comparison, Byline Bancorp has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

78.4% of Hancock Whitney shares are held by institutional investors. By comparison, 44.2% of Byline Bancorp’s shares are held by institutional investors. 1.0% of Hancock Whitney shares are held by insiders of the company. By comparison, 35.0% of Byline Bancorp’s shares are held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.

Dividends

Hancock Whitney pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Byline Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Hancock Whitney pays 20.0% of its earnings as a dividend. Byline Bancorp pays 14.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Byline Bancorp has increased its dividend for 1 consecutive years.

Analyst Notes

This is a breakdown of the current ratings and target prices for Hancock Whitney and Byline Bancorp, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Hancock Whitney 0 1 2 1 3.00
Parline Bancorp 0 1 1 0 2.50

Hancock Whitney currently has a consensus price target of $60.75, suggesting a potential upside of 30.95%. Byline Bancorp has a consensus price target of $27.50, suggesting a potential upside of 18.43%. Given Hancock Whitney’s stronger consensus rating and higher likely upside, research analysts clearly believe that Hancock Whitney is more favorable than Byline Bancorp.

Summary

Hancock Whitney beats Byline Bancorp on 13 of the 18 factors compared between the two stocks.

About Hancock Whitney (Get a rating)

Hancock Whitney Corporation operates as a banking holding company for Hancock Whitney Bank which provides a range of banking products and services to commercial, small business and retail customers. It accepts various deposit products, such as non-interest bearing demand deposits, interest bearing transaction accounts, savings accounts, money market deposit accounts and term deposit accounts. The Company’s loan products include commercial and industrial loans; commercial real estate loans; construction and land development loans; residential mortgage loans, including fixed and adjustable rate loans; consumer loans including second mortgage real estate loans, home equity lines of credit and loans for non-residential consumer purposes; revolving credit facilities; and letters of credit and financial guarantees. It also offers investment brokerage and cash management services, as well as annuity and life insurance products; and trust and investment management services to pension plans, businesses and individuals, as well as seized assets. The company operates 177 full-service banking and financial services offices and 240 ATMs, primarily in the Southern Gulf Corridor, including southern and central Mississippi; southern and central Alabama; southern, central, and northwest Louisiana; the North, Central and Panhandle regions of Florida; and parts of East Texas including Houston, Beaumont, Dallas and San Antonio. It also operates a loan origination office in Nashville, Tennessee; and a trust and asset management office in Marshall, Texas. The company was formerly known as Hancock Holding Company and changed its name to Hancock Whitney Corporation in May 2018. Hancock Whitney Corporation was founded in 1883 and is headquartered in Gulfport, Mississippi.

About Byline Bancorp (Get a rating)

Byline Bancorp, Inc. operates as a banking holding company for Byline Bank which provides various banking products and services to small and medium-sized businesses, commercial and financial real estate sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest bearing accounts, money market demand accounts, savings accounts, interest bearing checking accounts and term deposits; ATM cards and debit cards; and online, mobile and text banking, as well as commercial deposits. The company also offers term loans, revolving lines of credit and construction finance services; top-tier, secure financing solutions for lower-middle-market companies backed by private equity; the United States Department of Agriculture Small Business Administration and Loans; and cash management products and services. In addition, it offers financing solutions for equipment manufacturers and their end users; and investment, trust and wealth management services which include trustee and executor services, financial planning solutions, investment advisory services and private banking services for foundations and endowments, and wealthy individuals. It operates through 43 branches in the Chicago metropolitan area and one branch in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.



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Chicago Atlantic Real Estate Finance increases its revolving credit facility to $65 million https://fimendurance.com/chicago-atlantic-real-estate-finance-increases-its-revolving-credit-facility-to-65-million/ Fri, 13 May 2022 21:57:58 +0000 https://fimendurance.com/chicago-atlantic-real-estate-finance-increases-its-revolving-credit-facility-to-65-million/ Chicago Atlantic LincolnLLC wholly owned financing subsidiary of Chicago Atlantic Real Estate Finance, Inc. REFIhas entered into an amended and restated loan and security agreement by and between Chicago Atlantic Lincoln and two FDIC-insured financial institutions regarding the increase of its secured revolving credit facility. The overall revolving loan commitment was increased from $45.0 million […]]]>

Chicago Atlantic LincolnLLC wholly owned financing subsidiary of Chicago Atlantic Real Estate Finance, Inc. REFIhas entered into an amended and restated loan and security agreement by and between Chicago Atlantic Lincoln and two FDIC-insured financial institutions regarding the increase of its secured revolving credit facility.

The overall revolving loan commitment was increased from $45.0 million to $65.0 million with a maturity date of December 16, 2023, and a one-year extension option, subject to customary conditions.

The revolving loan bears interest at a variable rate, based on Chicago Atlantic Lincoln’s leverage ratio, ranging from 0% to 1.25% above prime, subject to a prime rate floor of 3, 25%. The company plans to use the available borrowing base from the revolving loan to fund additional loans and for general corporate purposes.

Jean MazarakisExecutive Chairman of Chicago Atlantic, said, “We are excited to work with our lending group to grow our revolving credit facility to $65 million and support our continued growth.

Photo: Courtesy of Marco Mackenzie on Unsplash

Related News

Chicago Atlantic reports first quarter 2022 net income of $7.8 million, higher dividends

Cannabis industry lender Chicago Atlantic Real Estate Finance reports fourth-quarter net income of $4.4 million after IPO

Chicago Atlantic Real Estate funds $30 million secured loan to Florida cannabis operator

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How to Reduce Your Debt as U.S. Credit Debt Approaches an All-Time High https://fimendurance.com/how-to-reduce-your-debt-as-u-s-credit-debt-approaches-an-all-time-high/ Tue, 10 May 2022 22:12:03 +0000 https://fimendurance.com/how-to-reduce-your-debt-as-u-s-credit-debt-approaches-an-all-time-high/ Knoxville, Tenn. (WATE) — If you’ve been using your credit card a lot lately, you’re one of the millions who have racked up debt at record rates. In a few months, there is a good chance that the total credit card balance of people in the United States will soon reach a new record high. […]]]>

Knoxville, Tenn. (WATE) — If you’ve been using your credit card a lot lately, you’re one of the millions who have racked up debt at record rates. In a few months, there is a good chance that the total credit card balance of people in the United States will soon reach a new record high. This record high debt would be a big reversal from the sharp decline seen in 2020 and early 2021.

At the height of the pandemic, spending and credit debt slowed, but things have apparently changed. While most working Americans are making more money and average hourly wages have fallen over the past year, many paychecks are still pinched with the highest rate of inflation in 40 years.

Across America, we’re spending big using our credit cards at an all-time high. The most recent release of the Federal Reserve’s monthly consumer credit report shows that there is a 35.3% increase, in March 2022, in revolving credit debt. American Express said customer spending increased 35% in the first quarter of 2022 compared to the same period in 2021. Capital One reported a 26% year-over-year increase in purchase volume and Chase noted a 21% year-over-year increase. during his first trimester.

“One of the things is that with COVID there has been so much influx of money. A lot of small businesses got loans, free money. Many people got free money. One of the things about finance is that your expenses are always increasing to meet your income. Expenses always increase to meet your income. So now what happens with people who have this extra money, people are used to these extra expenses,” said John Fawaz, TN financial planners.

The youngest Americans, ages 18 to 29, have the hardest time repaying their debts with the highest delinquency rates of 9.3%. The rate drops to 6% for those aged 30 to 39. Another drop to 5.6% for 40 to 49 year olds. Then 4.8% for those between 50 and 59 years old. Fawaz suggests a way to start reducing credit card debt.

“One of the easiest things you can do, but you have to be careful, if you have some equity in your home is to take out a home equity loan and pay off the credit cards. problem is you have to be careful because if you are not disciplined a year later you will have a home equity loan and you will have a new credit card. that you don’t have new credit cards,” Fawaz said.

If you’re looking to get rid of your credit card debt, opening a new credit card might not be your first thought, but a balance transfer credit card can help.

“So a lot of credit card companies offer that. Let’s say you have a credit card with Chase. What Chase will allow you to do, if you have money with another credit card company, is transfer your balances from the other credit card companies and what they will do is sweeten the pot for a year or two. If you transfer it here, we will only charge you 6%,” Fawaz said.

Although balance transfer cards sound like a good thing, they often set maximum limits on the amount of debt you can transfer, either a percentage of your total credit limit or a fixed dollar amount. In addition, you cannot make transfers between cards issued by the same bank. Before requesting a transfer, be sure to read the fine print. Also, good or excellent credit is often required to qualify for a balance transfer credit card.

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Information breakfast; American resilience defies bears so far https://fimendurance.com/information-breakfast-american-resilience-defies-bears-so-far/ Sun, 08 May 2022 19:24:00 +0000 https://fimendurance.com/information-breakfast-american-resilience-defies-bears-so-far/ Here’s our roundup of the weekend’s main economic events affecting New Zealand with news that the US economy is showing continued signs of resilience, although more and more analysts believe they may see a slowdown. arrive soon. The US job market continues to grow, defying those who thought it was going to reverse now. They […]]]>

Here’s our roundup of the weekend’s main economic events affecting New Zealand with news that the US economy is showing continued signs of resilience, although more and more analysts believe they may see a slowdown. arrive soon.

The US job market continues to grow, defying those who thought it was going to reverse now. They added 428,000 jobs in April, the same as in March and above the forecast of 391,000. This was the 12th consecutive month of employment gains above 400,000, but down from a gain of 714,000 in February in an increasingly tight labor market. Employment has increased across all sectors, but that still leaves their economy down -1.2 million jobs from its pre-pandemic level.

Compensation levels rose, but more modestly this month to be up +5.5% year on year, and well below the bite of inflation.

New data for America consumer credit demand showed a surge in March, well above what was expected – double in fact. In fact, it was the strongest monthly increase in more than eleven years, driven across the board by strong increases in both revolving credit (such as credit cards) and non-revolving credit (such as loans automobiles and personal). It doesn’t get much attention, but the jump is something. Data for February was also revised upwards. Inflation will be part of it, but so is improving sentiment.

Meanwhile, US mortgage rates accelerated their ascent, reaching 5.27% for their 30-year benchmark mortgage and the highest level since August 2009.

the April jobs in Canada report was not positive this time, after a series of good monthly results. This time, full-time employment fell and part-time employment rose, partially reversing months of opposing gains. We do not know if this is simply an aberration or a turning point.

China’s foreign exchange reserves have plummeted for a fourth consecutive month at $3.120 billion in April, the lowest value in a year, although this latest drop was small. Their gold reserves also fell.

It’s hard to see them coming back up anytime soon. Over the weekend, Chinese Premier Li warned of a “complicated and serious” employment situation in the country. The shockwaves of prolonged shutdowns in Shanghai and Beijing are now reverberating through their economies. The central government has asked all regions to prioritize measures to help businesses “retain jobs and overcome the current difficulties”.

World food prices fell -0.8% month-over-month in April, but still remained close to the March record. Vegetable oil prices fell significantly and grain prices fell slightly. Meanwhile, dairy prices rose for the eighth straight month on sluggish production in Western Europe and New Zealand, and rising demand for butter amid a shortage of sunflower oil. and margarine in Western Europe. Finally, meat prices rose solidly (+2.2%) due to supply tensions in the northern hemisphere and disturbances in Ukraine.

The war in Eastern Europe is suppress air cargo trade. In March, international volumes fell -5.4% compared to the same month a year ago. However, Asia/Pacific volumes only fell -2.7% on the same basis.

the freight container shipping cost by sea slipped again, mainly due to lower rates from China. But interestingly, rates to China are now showing a certain firmness that hasn’t been there for a long time. The cost of shipping bulk cargo increased stronger, and are now at their highest of the year, in a rise worth watching.

A presidential election in the Philippines is underway and could bring the family of a former dictator back to power as amnesia grips the country.

In Australia, they are in the last two weeks of their election campaign and recent survey shows a growing appetite for change. Other recent polls show a similar bend. Even the Murdoch press poll concede the change.

The 10-year UST yield starts today up +2 basis points since this time Friday at 3.14%. The UST 2-10 yield curve is steeper at +41 bps. And their 1-5 curve is much steeper at +1077 bps. Their 30-day-10-year curve is also steeper at +265 basis points. The Australian 10-year bond is now at 3.56% and up another +7 basis points. The ten-year Chinese government bond is up +1 bp to 2.84%. And the New Zealand 10-year government is also up +1 bps to 3.82%.

The price of gold today starts up +US$6 since this time Friday at US$1,883/oz.

And oil prices are almost +2% higher today at just over US$109.50/bbl in the US, while the international Brent price is now just above $112.50 US/bbl. After only minor gains for many months despite high prices, the number of US rigs is starting to rise again now and is back above 700 for the first time in two years.

The Kiwi Dollar will open again today at 64.1 USc and close to a two-year low. This represents a -7.5% devaluation since early April. Against the Australian dollar, we are slightly firmer at 90.6 AUc. And against the euro, we are unchanged at 60.8 euro cents. All of this means that our TWI-5 starts today at 71.5 and its lowest since late February. On a TWI-5 basis, the devaluation since early April is -4.4%.

Bitcoin price is down -5.4% from this time Saturday at US$34,057. In early April, it was at US$47,294, so it’s down -28% since then. Volatility over the past 24 hours has been elevated to just over +/- 3.3%.

The easiest place to stay on top of the risks associated with today’s events is to follow our Economic calendar here ».

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8 Credit Score Myths That Could Hurt Your Chances of Getting a Loan https://fimendurance.com/8-credit-score-myths-that-could-hurt-your-chances-of-getting-a-loan/ Sat, 07 May 2022 13:53:00 +0000 https://fimendurance.com/8-credit-score-myths-that-could-hurt-your-chances-of-getting-a-loan/ Are you planning to apply for a loan soon? You are in good company. In 2020, there were 22.7 million home loan applications, according to the Consumer Financial Protection Bureau. Meanwhile, Experian says auto loans hit a record high of $1.37 trillion. So there are a lot of loans. Your credit score and credit history […]]]>

Are you planning to apply for a loan soon? You are in good company. In 2020, there were 22.7 million home loan applications, according to the Consumer Financial Protection Bureau. Meanwhile, Experian says auto loans hit a record high of $1.37 trillion. So there are a lot of loans.

Your credit score and credit history are among the most important factors lenders look at when you apply for a loan or mortgage. If you’ve struggled with your finances in the past, learning more about your credit score can be daunting. But understanding your score and what’s in it is key to getting the loan you need.

There are many myths surrounding your credit score and what does or does not affect it. Let’s look at some of the most common myths and the truth behind them.

Discover 6 clever ways to crush your debts.

Having a credit card balance increases my credit score

This is a persistent myth around building credit. Carrying over a credit card balance from month to month can hurt your credit score and will likely cost you money in the long run, since you’re paying interest to the credit card company. credit on any balance not paid in full.

In general, people with the highest credit scores have a credit utilization rate — the total amount of credit you use compared to the amount of credit you have — by 10% or less. When your utilization rate exceeds 30%, your credit score may be negatively affected, as lenders may worry about the amount of credit you are using.

Paying off a debt quickly removes it from your credit report

Paying off revolving debt, like a credit card, can be a good plan because it improves your credit utilization rate. A history of on-time payments and responsible use of credit is generally helpful in loan applications because it shows lenders that you are using credit responsibly.

Some people think that a closed account or paid off debt quickly disappears from your credit report. In fact, if you’ve paid your debt in full and made all payments on time, credit reporting agencies could keep the account on your credit report for up to a decade.

Additionally, a history of late payments can stay on your credit report for up to seven years, and certain types of bankruptcies can stay on your report for up to 10 years. When paying off a credit card, be sure to do so responsibly. Consider setting up automatic payments so you don’t accidentally miss a payment.

You have to be rich to have a good credit score

Your bank balance and income have nothing to do with your credit score. It’s possible to have a high income and a bad credit score because you have a large balance on your credit card, made late payments, or mismanaged your finances.

Likewise, you can have an average salary and still have a high credit score. Many lenders use the FICO score, created by Fair Isaac Corp. The highest FICO score you can get is 850. Anything above 800 is generally considered excellent and can help you qualify for the best loan rates and terms.

All debts have an equal impact on your credit score

Paying off a credit card or other revolving debt can improve your credit score because it increases your credit utilization rate. Paying off installment loans, such as a car loan or mortgage, can also affect your score, but the impact is unlikely to be as great as paying off revolving debt.

So develop a strategy to help you pay off your revolving debt if you want to increase your score. Methods to achieve this include snowball or debt avalanche approaches. With the debt snowball, you first pay off your smaller debts and progress to larger ones. With the debt avalanche, you attack your debts starting with the bonds that have the highest interest rates.

Student loans don’t affect your credit score

All loans, including student loans, mortgages, car loans, medical debt, and even your utilities, are included in your credit score. Even one late payment can cause your credit score to drop, so paying your bills on time is essential.

Payment history is one of the most important factors in calculating your credit score. For example, it makes up about 35% of the composition of your FICO score. So, making payments on time is one of the most important things you can do to potentially boost your score. Develop a budget and call your lenders before you miss a payment so they can help you develop a strategy that could prevent a negative impact on your score.

Checking Your Report Hurts Your Credit Score

Checking your credit report regularly can be a great way to keep tabs on your credit profile. Checking your own report does not affect your score.

When you’re pre-approved for a loan or mortgage, it’s traditionally considered a “soft pull” since you haven’t applied for credit yet. Soft pull-ups have no impact on your score.

On the other hand, when you take the next step and submit a formal credit application, the lender will do a “hard bang” to check your credit report, which can drop your credit score by a few points. The same applies when applying for a credit card or other credit inquiries.

Be careful how many credit cards or loans you apply for, especially if you plan to buy a house or car soon. Multiple credit applications and multiple difficult applications can lower your score and set off red flags for lenders.

How much I earn affects my credit rating

Your income and job title do not affect your credit score and are not reported to credit bureaus. Lenders usually get your salary range and job title directly from you because they aren’t on your credit report and therefore don’t factor into your credit score.

Instead, your FICO credit score is made up of the following factors, from most impacting to least:

Regardless of your income, be sure to develop a budget that takes into account your needs like your mortgage or rent, food, utilities, debt repayment, and retirement savings. And try to leave room for the fun things in life, like hobbies or travel.

Using a debit card helps me build my credit rating

Debit cards are tied to a checking account and are not a form of credit, so they generally don’t impact your credit score. The money is withdrawn directly from your checking account and does not affect your available credit.

If you don’t have a credit card, applying for one and using it responsibly can be a great way to improve your credit score. Paying off the balance in full each month and making payments on time will help boost your score. If you are looking for a credit card, see the best credit cards to find the one that suits your needs.

At the end of the line

It is important to note that your credit score is just an overview of your financial life at any given time. By focusing on repay the debtincreasing your credit utilization rate and making your payments on time can help improve your credit score.

If you’re applying for a mortgage or car loan soon, check your credit score and credit report to find out what lenders will find. Then make a plan to improve your score as much as possible.

More from FinanceBuzz:

This article 8 Credit Score Myths That Could Hurt Your Chances of Getting a Loan originally appeared on FinanceBuzz.

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DT MIDSTREAM, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://fimendurance.com/dt-midstream-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Thu, 05 May 2022 14:27:04 +0000 https://fimendurance.com/dt-midstream-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ The following discussion of our results of operations and financial condition should be read in conjunction with our Consolidated Financial Statements and the Notes to Consolidated Financial Statements, which are included under Part I, Item 1 of this quarterly report, and the historical consolidated financial statements and notes thereto, which are included in the DT […]]]>
The following discussion of our results of operations and financial condition
should be read in conjunction with our Consolidated Financial Statements and the
Notes to Consolidated Financial Statements, which are included under Part I,
Item 1 of this quarterly report, and the historical consolidated financial
statements and notes thereto, which are included in the DT Midstream 2021 Annual
Report on Form 10-K. This discussion contains forward-looking statements that
involve risks and uncertainties. The forward-looking statements are not
historical facts, but rather are based on current expectations, estimates,
assumptions and projections about the midstream industry and our business and
financial results. Our actual results could differ materially from the results
contemplated by these forward-looking statements due to a number of factors,
including those discussed in the sections entitled "Forward-Looking Statements"
and "Risk Factors."

OVERVIEW

Our Business

We are an owner, operator, and developer of an integrated portfolio of natural
gas midstream assets. We provide multiple, integrated natural gas services to
customers through our interstate pipelines, intrastate pipelines, storage
systems, lateral pipelines and related treatment plants and compression and
surface facilities, and gathering systems and related treatment plants and
compression and surface facilities. We also own joint venture interests in
equity method investees which own and operate interstate pipelines, many of
which have connectivity to our wholly owned assets.

Our core assets connect demand centers in the Midwestern U.S., Eastern Canada,
Northeastern U.S. and Gulf Coast regions to production areas of the Haynesville
and Marcellus/Utica dry natural gas formations in the Gulf Coast and Appalachian
Basins, respectively.

The Separation

On July 1, 2021, DTE Energy completed the Separation through the distribution of
96,732,466 shares of DT Midstream common stock to DTE Energy shareholders.
Following the Separation on July 1, 2021, we became an independent public
company listed under the symbol "DTM" on the NYSE. DTE Energy no longer retains
any ownership in our company. See Note 1, "Separation, Description of the
Business, and Basis of Presentation" to the Consolidated Financial Statements
under Part I, Item 1 of this Form 10-Q.
                                       24
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RESULTS OF OPERATIONS


Management's Discussion and Analysis of Financial Condition and Results of
Operations includes financial information prepared in accordance with GAAP. The
following sections provide a detailed discussion of the operating performance
and future outlook of our segments. Segment information, described below,
includes intercompany revenues and expenses, as well as other income and
deductions that are eliminated in the Consolidated Financial Statements.

In November 2020, the SEC issued a final rule to modernize and simplify
Management's Discussion and Analysis and certain financial disclosure
requirements in SEC Regulation S-K. As permitted by this final rule, the
analysis below reflects the optional approach to discuss results of operations
in a sequential-quarter basis, which we believe will provide the most useful
information to investors in assessing our quarterly results of operations going
forward. Also, as required by the final rule, we have included the comparison of
the current quarter to the prior-year quarter for this filing only, and we will
cease to provide this comparison in future filings.

For the purposes of the following discussion, any increase or decrease relates to the comparison of the three months ended March 31, 2022 at the end of three months December 31, 2021or at the end of three months March 31, 2021depending on the case.

The following table summarizes our consolidated financial results:

                                                           Three Months Ended
                                              March 31,          December 31,      March 31,
                                                 2022                2021             2021
                                                  (millions, except per share amounts)
Operating revenues                        $        215          $        223      $      197
Net Income Attributable to DT Midstream             81                    87              78

Diluted earnings per common share $0.84 $0.89 $0.80



Operating revenues decreased compared to the three months ended December 31,
2021 in both our Pipeline and Gathering segments. Operating revenues increased
compared to the three months ended March 31, 2021 in both our Pipeline and
Gathering segments.

                                                       Three Months Ended
                                           March 31,        December 31,      March 31,
                                             2022               2021             2021
                                                           (millions)
Net Income Attributable to DT Midstream by Segment
Pipeline                                $    48            $         51      $       42
Gathering                                    33                      36              36
Total                                   $    81            $         87      $       78


Net income attributable to DT Midstream decreased $6 million compared to the
three months ended December 31, 2021 due to lower earnings at both our Pipeline
and Gathering segments. Net income attributable to DT Midstream increased
$3 million compared to the three months ended March 31, 2021 due to higher
earnings at our Pipeline segment, partially offset by lower earnings at our
Gathering segment.


                                       25
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Pipeline


The Pipeline segment consists of our interstate pipelines, intrastate pipelines,
storage systems, lateral pipelines and related treatment plants and compression
and surface facilities. This segment also includes our equity method
investments. Pipeline results and outlook are discussed below:
                                                                            Three Months Ended
                                                           March 31,             December 31,           March 31,
                                                              2022                   2021                  2021
                                                                                (millions)
Operating revenues                                     $       77               $         80          $        75
Operation and maintenance                                      13                         15                   19
Depreciation and amortization                                  16                         16                   16
Taxes other than income                                         4                          3                    4

Operating Income                                               44                         46                   36
Interest expense                                               13                         14                   11
Interest income                                                 -                          -                   (1)
Earnings from equity method investees                         (36)                       (36)                 (32)
Other (income) and expense                                      -                          -                   (2)
Income Tax Expense                                             16                         15                   15
Net Income                                                     51                         53                   45
Less: Net Income Attributable to Noncontrolling
Interests                                                       3                          2                    3
Net Income Attributable to DT Midstream                $       48           

$51 $42

Operating revenue decreased $3 million compared to the three months ended
December 31, 2021 primarily due to lower revenue from Stonewall Gas Gathering due to fewer short-term contracts.

Operating and maintenance expenses decreased $6 million compared to the three months ended March 31, 2021 mainly due to lower transaction costs related to the separation of $5 million.

Earnings from equity-accounted companies increased $4 million compared to the three months ended March 31, 2021 primarily due to higher revenues from NEXUS and Millennium Pipeline due to improved contracts.

Outlook


We believe our long-term agreements with customers and the location and
connectivity of our pipeline assets position the business for future growth. We
will continue to pursue economically attractive expansion opportunities that
leverage our current asset footprint and strategic relationships. These growth
opportunities include future Haynesville system expansion (LEAP), completion of
a new customer interconnection at Stonewall Gas Gathering, and additional growth
related to our equity method investments.
                                       26
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Gathering


The Gathering segment consists of our gathering systems and related treatment
plants and compression and surface facilities. Gathering results and outlook are
discussed below:
                                                            Three Months Ended
                                               March 31,       December 31,       March 31,
                                                  2022             2021              2021
                                                                (millions)
Operating revenues                            $   138         $         143      $      122
Operation and maintenance                          48                    51              31
Depreciation and amortization                      26                    26              25
Taxes other than income                             4                     2               3
Asset (gains) losses and impairments, net           -                     -              (1)
Operating Income                                   60                    64              64
Interest expense                                   18                    17              15
Interest income                                     -                     -              (2)
Other (income) and expense                          -                     1               1
Income Tax Expense                                  9                    10              14

Net income attributable to Intermediate DT $33 $36

$36

Operating revenue decreased $5 million compared to the three months ended
December 31, 2021 mainly due to the decline blue union income and revenue related to the production of the Susquehanna Gathering System. Operating revenue increased $16 million compared to the three months ended March 31, 2021 mainly due to the increase blue union income related to the production of $14 million and increased revenue related to the production of the Appalachian collection system from $3 million.


Operation and maintenance expense decreased $3 million compared to the three
months ended December 31, 2021 primarily due to lower employee-related expenses.
Operation and maintenance expense increased $17 million compared to the three
months ended March 31, 2021 primarily due to higher Blue Union expenses of $21
million, partially offset by lower Separation related transaction costs of $5
million. Higher Blue Union expenses were driven by higher gathered volumes and
associated variable costs to operate facilities and planned maintenance.

Interest expense increased $3 million compared to the three months ended
March 31, 2021 primarily due to higher interest rates on our external debt compared to interest rates on borrowings from DTE Energy.

Income tax expense decreased $5 million compared to the three months ended
March 31, 2021 mainly due to a decrease in earnings before income taxes.

Outlook


We believe our long-term agreements with producers and the quality of the
natural gas reserves in the Marcellus/Utica and Haynesville shale regions
position the business for future growth. We will continue to pursue economically
attractive expansion opportunities that leverage our current asset footprint and
strategic relationships. These growth opportunities include future Haynesville
system expansion (Blue Union) and expansion opportunities at the Appalachia
Gathering System.
                                       27
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STRATEGY


Our principal business objective is to safely and reliably operate and develop
natural gas assets across our premier footprint. Our proven leadership and
highly engaged employees have an excellent track record. Prospectively, we
intend to continue this track record by executing on our natural gas-centric
business strategy focused on disciplined capital deployment and supported by a
flexible, well capitalized balance sheet. Additionally, we intend to develop low
carbon business opportunities and deploy greenhouse gas reducing technologies as
part of our goal of being leading environmental stewards in the midstream
industry and have announced a net zero carbon emissions goal by 2050. Our
strategy is premised on the following principles:

•disciplined deployment of capital in assets supported by solid fundamentals;

• capitalize on opportunities for integration and use of assets;

•pursue economically attractive opportunities;

•growth in cash flow supported by long-term firm revenue contracts; and

•Provide exceptional service to our customers.

CAPITAL INVESTMENTS


Capital spending within our company is primarily for ongoing maintenance and
expansion of our existing assets, and if identified, attractive growth
opportunities. We have been disciplined in our capital deployment and make
growth investments that meet our criteria in terms of strategy, management
skills, and identified risks and expected returns. All potential investments are
analyzed for their rates of return and cash payback on a risk adjusted basis. We
anticipate total capital expenditures, inclusive of contributions to equity
method investees, in 2022 of approximately $350 million to $400 million.

ENVIRONMENTAL ISSUES


We are subject to extensive U.S. federal, state, and local environmental
regulations. Additional compliance costs may result as the effects of various
substances on the environment are studied and governmental regulations are
developed and implemented. Actual costs to comply with such regulation could
vary substantially from our expectations. Pending or future legislation or
regulation could have a material impact on our operations and financial
position. Potential impacts include expenditures for environmental equipment,
such as pollution control equipment, beyond what is currently planned, financing
costs related to additional capital expenditures and the replacement costs of
aging pipelines and other facilities.

For further discussion of environmental matters, see Note 9, "Commitments and
Contingencies" to the Consolidated Financial Statements under Part I, Item 1 of
this Form 10-Q.
                                       28
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CAPITAL AND LIQUIDITY RESOURCES

Cash requirements


Our principal liquidity requirements are to finance our operations, fund capital
expenditures, satisfy our indebtedness obligations, and pay dividends, as deemed
appropriate. We believe we will have sufficient internal and external capital
resources to fund anticipated capital and operating requirements. We expect that
cash from operations in 2022 will be approximately $605 million to $655 million.
                                                                         Three Months Ended
                                                                              March 31,
                                                                      2022                2021
                                                                             (millions)
Cash and Cash Equivalents at Beginning of Period                  $      132          $       42
Net cash and cash equivalents from operating activities                  234                 163
Net cash and cash equivalents used for investing activities              (17)                (17)
Net cash and cash equivalents used for financing activities              (68)               (159)
Net Increase (Decrease) in Cash and Cash Equivalents                     149                 (13)
Cash and Cash Equivalents at End of Period                        $      281          $       29


Operating Activities

Cash flows from our operations can be impacted in the short term by the volumes
gathered or transported through our systems, changing commodity prices,
seasonality, weather fluctuations, dividends from equity method investees and
the financial condition of our customers. Our preference to enter into firm
service contracts with firm reservation fees helps minimize our long-term
exposure to commodity prices and its impact on the financial condition of our
customers and provides us more stable operating performance and cash flows.

Net cash and cash equivalents from operating activities increased $71 million in
the three months ended March 31, 2022 primarily due to net changes in working
capital, an increase in dividends received from equity method investees, and an
increase in operating income after adjustment for non-cash items including
depreciation and amortization expense, amortization of operating lease
right-of-use assets, and assets (gains) losses and impairments. These increases
were partially offset by an increase in interest expense and a decrease in
interest income.

Investing activities


Cash outflows associated with investing activities are primarily the result of
plant and equipment expenditures, acquisitions, and contributions to equity
method investees. Cash inflows from investing activities are generated from
collection of notes receivable, distributions from equity method investees, and
proceeds from asset sales.

Net cash and cash equivalents used for investing activities was unchanged in the
three months ended March 31, 2022. During the three months ended March 31, 2022,
a decrease in notes receivable repaid by DTE Energy was mostly offset by a
decrease in DT Midstream's plant and equipment expenditures.

Fundraising activities


Prior to the Separation we relied on short-term borrowings and contributions
from DTE Energy as a source of funding for capital requirements not satisfied by
our operations. In June 2021, we issued senior notes in an aggregate principal
amount of $2.1 billion and entered into a Credit Agreement providing for a $1.0
billion Term Loan Facility and a $750 million Revolving Credit Facility. See
Note 8, "Debt" to the Consolidated Financial Statements under Part I, Item 1 of
this Form 10-Q.

Net cash and cash equivalents used for financing activities decreased $91 million within three months March 31, 2022primarily due to the absence of loan repayments from DTE Energy, partially offset by dividends paid on common stock to shareholders, repayment of long-term debt and repurchase of common stock.


During the three months ended March 31, 2022, DT Midstream paid cash dividends
on common stock of $0.60 per share related to the quarter ended December 31,
2021. See Note 5, "Earnings per Share and Dividends" to the Consolidated
Financial Statements under Part I, Item 1 of this Form 10-Q.
                                       29
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Outlook


We expect to continue executing on our natural gas-centric business strategy
focused on disciplined capital deployment and supported by a flexible, well
capitalized balance sheet. Other than the impact of the items discussed below on
our debt and equity capitalization, we are not aware of any trends or other
demands, commitments, events or uncertainties that will result in or that are
reasonably likely to result in our liquidity increasing or decreasing
materially.

Our working capital requirements will primarily be driven by changes in accounts receivable and accounts payable. We continue our efforts to identify opportunities to improve cash flow through working capital initiatives and securing additional long-term firm commitments from customers.


Historically, our sources of liquidity included cash generated from operations
and, prior to the Separation, loans obtained through DTE Energy's corporate-wide
cash management program. After the Separation, our sources of liquidity include
cash generated from operating activities and available borrowings under our
Revolving Credit Facility. We began investing in money market cash equivalents
in August 2021.

In June 2021, we issued long-term debt in the form of $2.1 billion Senior Notes
and a $1.0 billion Term Loan Facility. Proceeds were used for the repayment of
the Short-term borrowings due to DTE Energy as well as a one-time special
dividend provided to DTE Energy. We also entered into a $750 million secured
Revolving Credit Facility for general corporate purposes and letter of credit
issuances to support our future operations and liquidity. The Credit Agreement
covering the Term Loan Facility and Revolving Credit Facility includes financial
covenants that DT Midstream must maintain. See Note 8, "Debt" to the
Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for
additional discussion on the financial covenants.

As of March 31, 2022, we had $8 million of letters of credit outstanding and no
borrowings outstanding under our Revolving Credit Facility. We have
approximately $1 billion of available liquidity as of March 31, 2022, consisting
of cash and cash equivalents and amounts available under our Revolving Credit
Facility.

In April 2022, we issued long-term debt in the form of $600 million Senior
Secured Notes. We used the net proceeds from the sale of the Senior Secured
Notes to partially repay existing indebtedness under our Term Loan Facility. See
Note 8, "Debt" to the Consolidated Financial Statements under Part I, Item 1 of
this Form 10-Q.

We expect to pay regular cash dividends to DT Midstream common stockholders in
the future. Any payment of future dividends is subject to approval by the Board
of Directors and may depend on our future earnings, cash flows, capital
requirements, financial condition, and the effect a dividend payment would have
on our compliance with relevant financial covenants. Over the long-term, we
expect to grow our dividend consistent with cash flow growth and are targeting a
payout ratio consistent with pure-play midstream companies.

We believe we will have sufficient operating flexibility, cash resources and
funding sources to maintain adequate amounts of liquidity and to meet future
operating cash, capital expenditure and debt servicing needs. However, virtually
all of our businesses are capital intensive, or require access to capital, and
the inability to access adequate capital could adversely impact future earnings
and cash flows.

See Note 1, “Separation, description of business and method of presentation”, Note 8, “Payables” and Note 9, “Commitments and contingencies” of the consolidated financial statements under Part I, point 1 of this form 10-Q. .

                                       30
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OFF-BALANCE SHEET ARRANGEMENTS


We are party to off-balance sheet arrangements, which include our equity method
investments. See the section entitled "Principles of Consolidation" in Note 1,
"Separation, Description of the Business, and Basis of Presentation" to the
Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for
further discussion of the nature, purpose and other details of such agreements.

Other off-balance sheet arrangements include the Vector Pipeline Line of Credit
and our guarantees, which are discussed further in Note 9, "Commitments and
Contingencies" to the Consolidated Financial Statements under Part I, Item 1 of
this Form 10-Q.

NEW ACCOUNTING PRONOUNCEMENTS

See Note 3, “New Accounting Pronouncements” to the Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

                                       31

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© Edgar Online, source Previews

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Treace secures up to $150 million in debt financing https://fimendurance.com/treace-secures-up-to-150-million-in-debt-financing/ Mon, 02 May 2022 12:00:00 +0000 https://fimendurance.com/treace-secures-up-to-150-million-in-debt-financing/ PONTE VEDRA, Fla., May 02, 2022 (GLOBE NEWSWIRE) — Treace Medical Concepts, Inc. (“Treace” or the “Company”) (Nasdaq: TMCI), a medical technology company driving fundamental change in the surgical treatment of hallux valgus (commonly known as bunions), today announced that it has entered into a new five-year, $150 million loan agreement with MidCap Financial, including […]]]>

PONTE VEDRA, Fla., May 02, 2022 (GLOBE NEWSWIRE) — Treace Medical Concepts, Inc. (“Treace” or the “Company”) (Nasdaq: TMCI), a medical technology company driving fundamental change in the surgical treatment of hallux valgus (commonly known as bunions), today announced that it has entered into a new five-year, $150 million loan agreement with MidCap Financial, including up to $120 million in term loans and a $30 million revolving credit facility. Proceeds from the new term loan refinanced the Company’s existing $30 million term loan with CR Group LP. In addition, the new revolving credit facility will expand the Company’s revolving credit capacity and replace Silicon Valley Bank’s existing unutilized $10 million revolving credit facility.

“We are pleased to secure this non-dilutive debt financing on favorable terms, providing us with up to $150 million to further strengthen our balance sheet and provide financial flexibility as we execute our business strategies and drive growth,” said John T. Treace, CEO, Founder and Member of the Board of Directors of Treace. “We are committed to becoming the standard of care in bunion surgery and this funding provides us with a capital-efficient vehicle to continue to grow our market, invest in our business and gain significant market share.”

The Company’s new loan agreement includes a five-year maturity date for both the term loan and the revolving credit facility. The Company drew $54 million at closing and used a portion of the proceeds to refinance its existing $30 million credit facility. The annual interest rate is equal to the adjusted forward SOFR1 subject to a floor of 1% and a ceiling of 3%, plus (1) 6% for the term loan and (2) 4% for the revolving loan. The term loan provides for at least 48 months of interest only at closing, which can be extended to 60 months.

With the completion of this refinancing, the Company now has liquidity and access to liquidity of approximately $220 million.

Armentum Partners served as financial advisor to Treace on the transaction. Additional details regarding the foregoing financing are set forth in the company’s current report on Form 8-K, filed today with the SEC.

Forward-looking statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, the Company’s expectations regarding the financial flexibility provided by the new credit facility, as well as its earnings expectations. market share and growth prospects. Forward-looking statements are based on management’s current assumptions and expectations regarding future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events. may differ materially from those expressed or implied by such statements due to numerous risks and uncertainties. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of Treace’s public filings with the Securities and Exchange Commission (SEC). ), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on March 4, 2022. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of new information, future developments or otherwise.

About Treace Medical Concepts
Treace Medical Concepts, Inc. is a medical technology company focused on advancing the standard of care for the surgical management of bunion deformities and associated midfoot correction. Bunions are complex three-dimensional deformities that originate from an unstable joint in the midfoot. Treace pioneered and patented the Lapiplasty® 3D Bunion Correction™ System – a combination of instruments, implants and surgical methods designed to correct all 3 planes of the bunion deformity and secure the unstable joint, attacking the root cause of bunion and helping patients get back to their active lifestyle. Treace recently expanded its offering with the Adductoplasty™ midfoot correction system, designed for reproducible midfoot correction to provide additional support for patients with hallux valgus. For more information, visit www.treace.com.

contacts:

Tracee Medical Concepts
Mark L.Hair
Financial director
mhair@treace.net
(904) 373-5940

Investors:

Gilmartin Group
Lynn Lewis or Vivian Cervantes
IR@treace.net

______________________________

1 “Adjusted Forward SOFR” means the annual rate equal to the sum of the 30-day forward-looking guaranteed overnight rate, as published by CME Group Benchmark Administration Limited (CBA) from time to time, plus 0.10% , reset monthly.

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