Summary
ONEOK Partners, L.P. (a subsidiary of ONEOK, Inc.) has secured a new three-year, $1.0 billion unsecured term loan facility, maturing on January 8, 2019. While the company did not draw on the facility at closing, it provides a significant source of liquidity for working capital, capital expenditures, debt repayment, and other general partnership purposes. This new facility carries similar covenants and default provisions to ONEOK Partners' existing revolving credit agreement, ensuring a consistent financial framework. The borrowings are nonrecourse to the parent company, ONEOK, Inc., and are guaranteed by its wholly owned subsidiary, ONEOK Partners Intermediate Limited Partnership.
Key Highlights
- 1ONEOK Partners secured a new $1.0 billion unsecured three-year term loan facility.
- 2The facility matures on January 8, 2019, with options for two one-year extensions.
- 3Funds can be used for working capital, capital expenditures, debt repayment, and general partnership needs.
- 4The term loan is unsecured, but guaranteed by ONEOK Partners Intermediate Limited Partnership.
- 5Borrowings are nonrecourse to the parent company, ONEOK, Inc.
- 6The facility contains standard affirmative, negative, and financial ratio maintenance covenants.
- 7Interest can be calculated using either a base rate or LIBOR, with margins tied to debt ratings.
Frequently Asked Questions
The term loan facility is intended to provide ONEOK Partners with liquidity for working capital needs, future capital expenditures, repayment of existing indebtedness, and other general partnership purposes.
No, borrowings under the Term Loan Agreement are nonrecourse to ONEOK, Inc., meaning the parent company does not guarantee the obligations of ONEOK Partners under this facility.
The Term Loan Facility matures on January 8, 2019. ONEOK Partners has the option to extend the maturity date by one year, up to two times, subject to the lenders' consent for each extension.
Yes, the Term Loan Agreement contains substantially similar covenants to ONEOK Partners' existing revolving credit agreement, including customary affirmative, negative, and financial ratio maintenance covenants. These ensure the company maintains certain financial health metrics.