Summary
ONEOK Inc. (OKE) filed an 8-K on May 29, 2019, to report a material definitive agreement. Specifically, the company entered into a first amendment and extension agreement for its $2.5 billion revolving credit facility. This amendment extends the maturity date of the credit agreement from June 30, 2023, to June 30, 2024. Furthermore, the amendment addresses the transition away from the London Interbank Offered Rate (LIBOR), indicating proactive management of future interest rate benchmarks. This extension and amendment to its revolving credit facility provides ONEOK with enhanced financial flexibility and a longer runway for its borrowing capacity, which is generally viewed positively by investors as it supports ongoing operational and strategic needs.
Key Highlights
- 1ONEOK Inc. amended and extended its $2.5 billion revolving credit agreement.
- 2The maturity date of the credit facility has been extended by one year, from June 30, 2023, to June 30, 2024.
- 3The amendment addresses the selection of a successor to the London Interbank Offered Rate (LIBOR).
- 4All other terms and conditions of the original credit agreement remain in full force and effect.
- 5Citibank, N.A. continues to serve as the administrative agent, swingline lender, letter of credit issuer, and a lender under the agreement.
- 6The filing was made on May 29, 2019, with an event date of May 24, 2019.