Summary
ONEOK, Inc. (OKE) filed an 8-K report on July 19, 2006, disclosing a significant amendment and restatement of its credit agreement. The key change involves extending the maturity date of its $1.2 billion unsecured revolving credit facility from September 16, 2009, to July 14, 2011. This extension provides the company with greater financial flexibility and a longer runway for its operations and strategic initiatives. The company also retains the option to extend the maturity further by one year with lender consent. Importantly, the total available borrowing capacity remains at $1.2 billion, with an option to request an additional $500 million. As of June 30, 2006, ONEOK had no outstanding borrowings but had utilized $143.5 million for letters of credit. The updated agreement maintains customary covenants, including a debt-to-total-capital ratio limit of 67.5%, ensuring prudent financial management.
Key Highlights
- 1ONEOK entered into an Amended and Restated Credit Agreement totaling $1.2 billion.
- 2The maturity date of the revolving credit facility was extended from September 16, 2009, to July 14, 2011.
- 3The company has the option to extend the maturity date by an additional year with lender consent.
- 4The total available borrowing capacity remains $1.2 billion, with a provision to request up to an additional $500 million.
- 5As of June 30, 2006, there were no outstanding borrowings under the credit agreement, with $143.5 million used for letters of credit.
- 6The credit agreement includes covenants such as a maximum consolidated total debt to total capital ratio of 67.5%.