Summary
ONEOK, Inc. (OKE) announced on May 9, 2024, the execution of an extension agreement concerning its $2.5 billion senior unsecured revolving credit facility. This agreement, effective May 8, 2024, pushes the maturity date of this facility back by one year, from June 10, 2027, to June 10, 2028. This extension is a positive development for investors as it provides enhanced financial flexibility and reinforces the company's access to liquidity. By securing an extended maturity, ONEOK reduces the near-term refinancing risk and demonstrates its strong relationships with lenders. The credit facility's terms remain otherwise unchanged, indicating stability in the existing debt structure.
Key Highlights
- 1ONEOK, Inc. has extended the maturity date of its $2.5 billion senior unsecured revolving credit facility by one year.
- 2The new maturity date for the credit facility is June 10, 2028, extended from June 10, 2027.
- 3The extension agreement was entered into effective May 8, 2024.
- 4All other terms and conditions of the Credit Agreement remain unchanged.
- 5The credit facility involves ONEOK, Inc. as borrower, with ONEOK Partners Intermediate Limited Partnership, ONEOK Partners, L.P., and Magellan Midstream Partners, L.P. as guarantors.
- 6Citibank, N.A. serves as the administrative agent, swingline lender, and letter of credit issuer.
Frequently Asked Questions
The main purpose of this 8-K filing is to report that ONEOK, Inc. has entered into an extension agreement for its $2.5 billion senior unsecured revolving credit facility, pushing its maturity date back by one year to June 10, 2028. This demonstrates continued access to credit and financial flexibility.
The extension of the credit facility maturity by one year provides investors with assurance regarding the company's financial stability and liquidity. It reduces the risk of short-term refinancing needs and signals a positive relationship with its lenders, allowing the company to focus on its operational and strategic initiatives without immediate debt maturity concerns.
No, according to the filing, all other terms and conditions of the Credit Agreement remain unchanged and in full force and effect. Only the maturity date has been extended.
The key parties include ONEOK, Inc. as the borrower, ONEOK Partners Intermediate Limited Partnership, ONEOK Partners, L.P., and Magellan Midstream Partners, L.P. as guarantors, and Citibank, N.A. as the administrative agent, swingline lender, and letter of credit issuer.