Summary
ONEOK, Inc. (OKE) filed an 8-K on July 27, 2005, reporting a material amendment to its credit agreement. Specifically, the company entered into a Second Amendment to its $1.0 billion, five-year credit agreement with Bank of America, N.A. This amendment temporarily allows ONEOK to increase its consolidated total indebtedness to 70.0 percent of total capital, up from the previous limit of 67.5 percent. This increased flexibility in debt levels is effective from July 25, 2005, through February 28, 2006. Following this temporary allowance, the consolidated total indebtedness limit will revert to 67.5 percent of total capital effective March 1, 2006. Investors should note this as a short-term adjustment to debt covenants, likely aimed at providing financial flexibility during the specified period, rather than a permanent change in the company's capital structure or debt policy. The filing details this specific change to Section 7.08(a) of the credit agreement.
Key Highlights
- 1ONEOK, Inc. entered into a Second Amendment to its $1.0 billion five-year credit agreement on July 25, 2005.
- 2The amendment temporarily increases the maximum consolidated total indebtedness to 70.0% of total capital.
- 3This higher debt limit is effective from July 25, 2005, through February 28, 2006.
- 4The consolidated total indebtedness limit will revert to 67.5% of total capital on March 1, 2006.
- 5The amendment was made with Bank of America, N.A., as Administrative Agent, Lender, and L/C Issuer, and other Lenders.
- 6The amendment modifies Section 7.08(a) of the existing Credit Agreement.