Summary
ONEOK, Inc. (OKE) announced on November 20, 2018, the execution of a new three-year, $1.5 billion unsecured term loan facility, dated November 19, 2018. This facility provides significant liquidity for general corporate purposes, including working capital, capital expenditures, and debt repayment. The company has the flexibility to draw down these funds within a 180-day period after the closing date. The new term loan agreement includes covenants similar to the company's existing revolving credit facility, ensuring a consistent framework for financial management. The obligations under this new facility are unsecured and guaranteed by ONEOK's wholly owned subsidiaries, maintaining a similar structure to existing debt arrangements. This move enhances ONEOK's financial flexibility and provides additional resources to support its ongoing operational and growth initiatives.
Key Highlights
- 1ONEOK entered into a new $1.5 billion unsecured term loan facility maturing on November 19, 2021.
- 2The facility has a three-year term and is unsecured, providing financial flexibility.
- 3Funds can be used for working capital, repayment of outstanding indebtedness, capital expenditures, and general corporate purposes.
- 4ONEOK has the option to draw funds within a 180-day period following the closing date.
- 5The term loan agreement includes covenants substantially similar to the company's existing revolving credit facility.
- 6The facility is guaranteed by ONEOK's wholly owned subsidiaries, ONEOK Partners Intermediate Limited Partnership and ONEOK Partners, L.P.
- 7The company has the option to extend the maturity date by one year, up to two times, subject to lender consent.