Summary
ONEOK Inc.'s affiliate, ONEOK Partners, L.P. (the "Partnership"), has entered into a new five-year, $1.2 billion unsecured revolving credit facility, replacing its previous agreement. This new facility, effective August 1, 2011, matures on August 1, 2016, and includes options for the Partnership to extend the maturity date up to two times, by one year each, subject to lender consent. The credit facility is intended for general partnership purposes and will serve as a backstop for the Partnership's commercial paper program. The new credit agreement provides significant financial flexibility, with an initial capacity of $1.2 billion that can be increased by up to an additional $500 million. It also features a $100 million letter of credit subfacility and a $100 million swing line subfacility. The Partnership's obligations under this new facility are guaranteed by its wholly-owned subsidiary, ONEOK Partners Intermediate Limited Partnership. This development is a key indicator of the company's ongoing commitment to maintaining strong liquidity and financial support for its operations.
Key Highlights
- 1ONEOK Partners, L.P. secured a new $1.2 billion unsecured revolving credit facility.
- 2The new credit facility has a five-year term, maturing on August 1, 2016.
- 3The facility includes provisions for potential extension of the maturity date.
- 4It offers flexibility for increasing the total commitment by up to an additional $500 million.
- 5The credit line has a $100 million letter of credit subfacility and a $100 million swing line subfacility.
- 6This new agreement replaces the Partnership's previous credit facility dated March 30, 2007.
- 7The facility will be used for general partnership purposes and as a backstop for its commercial paper program.