Summary
This 8-K filing from The Williams Companies, Inc. (WMB) dated June 5, 2003, announces a significant refinancing of its credit facilities. The company is finalizing a new $800 million credit facility primarily intended for issuing letters of credit, expected to be completed by mid-June. This new facility replaces an existing $1.1 billion credit line that was secured by a majority of the company's midstream gas and liquids assets.
Key Highlights
- 1Williams Companies is establishing a new $800 million credit facility focused on letter of credit issuance.
- 2The new facility is expected to be finalized by mid-June 2003.
- 3This new facility replaces a prior $1.1 billion credit line.
- 4The previous credit line included a $700 million secured revolving facility and a $400 million letter of credit facility.
- 5The new $800 million facility is a two-year agreement.
- 6The new agreement releases the company's midstream gas and liquids assets as collateral.
- 7The new facility is cash-collateralized only to the extent of issued letters of credit.
Frequently Asked Questions
The new $800 million credit facility is primarily intended for the purpose of issuing letters of credit.
The new facility releases the majority of the company's midstream gas and liquids assets that were backing the previous credit agreement, meaning they are no longer pledged as security.
The new facility is for $800 million, down from the previous $1.1 billion credit line. The old line consisted of a $700 million secured revolving facility and a $400 million letter of credit facility. The new facility is a two-year agreement and is cash-collateralized only when letters of credit are actually issued.
Williams Companies expects to complete the new credit agreement by mid-June 2003.