Summary
ONEOK, Inc. (OKE) announced on April 18, 2017, the execution of a new $2.5 billion revolving unsecured credit facility (the "ONEOK Credit Agreement"), which is designed to provide significant liquidity for various corporate purposes, including working capital, capital expenditures, and potential acquisitions. This facility is subject to the completion of the merger between ONEOK Partners, L.P. and a ONEOK subsidiary, with an effective date deadline of October 16, 2017. The credit facility includes options for up to an additional $1.0 billion in commitments and matures in five years, with potential one-year extensions.
Key Highlights
- 1ONEOK entered into a new $2.5 billion unsecured revolving credit facility.
- 2The facility can be increased by an additional $1.0 billion, subject to certain conditions.
- 3The credit facility is intended to fund working capital, capital expenditures, acquisitions, and other general corporate purposes.
- 4The effectiveness of the credit facility is contingent upon the completion of the ONEOK Partners merger by October 16, 2017.
- 5The new credit facility matures in five years and can be extended.
- 6ONEOK Partners and its subsidiary will guarantee the obligations under the new credit facility.
- 7ONEOK Partners also amended its existing $1.0 billion unsecured term loan agreement, which will also be guaranteed by ONEOK upon completion of the merger.