Summary
ONEOK, Inc. (OKE) announced the termination of its Amended and Restated Credit Agreement, effective January 31, 2014. This termination is contingent on the successful closing of the merger between ONEOK Partners, L.P. and a wholly owned subsidiary of ONEOK, where ONEOK Partners will continue as the surviving entity. The termination is also subject to the satisfaction of closing conditions for a new $2.5 billion revolving unsecured credit facility, referred to as the 2017 Credit Agreement. Similarly, ONEOK Partners, L.P. has also delivered a notice of termination for its own Amended and Restated Credit Agreement, subject to the same merger closing and new credit facility conditions. Notably, many lenders and letter of credit issuers involved in the terminated agreements are also participants in the new 2017 Credit Agreement, suggesting a smooth transition and a consolidation of credit facilities.
Key Highlights
- 1ONEOK, Inc. is terminating its existing credit agreement.
- 2ONEOK Partners, L.P. is also terminating its existing credit agreement.
- 3Both terminations are contingent on the closing of the ONEOK Partners merger.
- 4A new $2.5 billion revolving unsecured credit facility (2017 Credit Agreement) will become effective upon merger closing.
- 5Many lenders from old agreements are participating in the new credit facility.
- 6This suggests a refinancing and consolidation of debt facilities.