Summary
ONEOK, Inc. (OKE) announced on June 13, 2022, the execution of a new $2.5 billion revolving unsecured credit facility that matures in five years from the closing date of June 10, 2022. This facility, entered into with Citibank, N.A. as the administrative agent and other lenders, provides significant financial flexibility for the company. It includes subfacilities for letters of credit and swing line loans, and importantly, offers the option for ONEOK to request an increase in commitments of up to an additional $1.0 billion, subject to customary conditions. The proceeds from borrowings under this new credit agreement can be utilized for various corporate purposes, including working capital needs, capital expenditures, potential acquisitions, and other general corporate needs, underscoring its role in supporting ONEOK's operational and strategic initiatives. Additionally, the company's subsidiaries, ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership, have entered into an amended and restated guaranty agreement to back these obligations, ensuring robust financial support for the credit facility.
Key Highlights
- 1ONEOK entered into a new $2.5 billion revolving unsecured credit facility, providing substantial liquidity and financial flexibility.
- 2The credit facility has a maturity of five years from the closing date of June 10, 2022.
- 3The facility includes a $100 million letter of credit subfacility and a $200 million swing line subfacility.
- 4ONEOK has the option to increase commitments by up to an additional $1.0 billion, subject to certain conditions.
- 5Proceeds can be used for working capital, capital expenditures, acquisitions, and general corporate purposes.
- 6ONEOK's subsidiaries, ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership, have provided guarantees for the obligations under the new credit agreement.
- 7The credit agreement contains customary covenants, conditions to borrowing, and events of default.