01—Abstract
Summary
Summary of the 8-K filed May 16, 2024. Cited figures are marked; the original filing is the authoritative source.
Western Midstream Operating, LP ("WES Operating"), a subsidiary of Western Midstream Partners, LP ("WES"), entered into an amendment on May 16, 2024 to its senior unsecured revolving credit agreement (the "RCF"), originally dated April 6, 2023, with Wells Fargo Bank, National Association, as administrative agent.
The amendment extends the maturity date to April 6, 2029 for the loans and commitments of certain lenders totaling $1,880 milliona, pursuant to Section 2.24 of the RCF. As of May 16, 2024, there were no borrowings outstanding under the RCF, and $5.1 million of letters of credit were outstanding. The filing also notes that certain lenders and their affiliates have performed, and may in the future perform, financial advisory, commercial, and investment banking services for WES Operating and WES, and have acted or may act as underwriters of their debt and equity issuances.
For investors, the key takeaway is a maturity extension of the company's revolving credit facility for a portion of its lender group, which pushes out the timing of refinancing needs for that committed capacity. The filing itself does not describe the reasons for the extension or the pricing terms; the full amendment is filed as Exhibit 10.1.
02—Key points
Key Highlights
- WES Operating amended its senior unsecured revolving credit agreement on May 16, 2024 (Item 1.01 and Item 2.03).
- Maturity extended to April 6, 2029 for loans and commitments of certain lenders totaling $1,880 million, under Section 2.24 of the RCF.
- No borrowings were outstanding under the RCF as of May 16, 2024.
- Outstanding letters of credit under the RCF totaled $5.1 million as of May 16, 2024.
- The original RCF was dated April 6, 2023, with Wells Fargo Bank, National Association, as administrative agent.
- Certain lenders and their affiliates have provided and may continue to provide financial advisory, commercial, and investment banking services to WES Operating and WES.
- The full amendment is filed as Exhibit 10.1, First Amendment to Fourth Amended and Restated Revolving Credit Agreement.
03—Questions
Frequently Asked Questions
What changed in the revolving credit agreement?
The maturity date was extended to April 6, 2029 for the loans and commitments of certain lenders totaling $1,880 million, pursuant to Section 2.24 of the RCF.
Were there any borrowings under the revolving credit facility?
As of May 16, 2024, there were no borrowings outstanding under the RCF, though $5.1 million in letters of credit were outstanding.
Who is the administrative agent on the facility?
Wells Fargo Bank, National Association, serves as administrative agent under the RCF.
Does the filing disclose the pricing or the reasons for the extension?
The filing describes only the maturity extension and the lender amounts involved. Full terms are contained in Exhibit 10.1, the First Amendment to the Fourth Amended and Restated Revolving Credit Agreement.
Do lenders have other relationships with the company?
Yes. The filing states that certain lenders and their affiliates have performed and may perform financial advisory, commercial, and investment banking services for WES Operating and WES, and have acted or may act as underwriters of their debt and equity issuances.
04—Continue