What is the main purpose of the amendment to the Credit Agreement?

The main purposes of the amendment are to modify the pricing grid that determines the interest rates on loans and to extend the maturity date of the Credit Agreement from its original date (May 1, 2006) to May 1, 2012. This provides greater financial flexibility and potentially alters borrowing costs.

Who are the parties involved in this Credit Agreement amendment?

The amendment involves The Williams Companies, Inc., its subsidiaries Williams Partners L.P., Northwest Pipeline Corporation, and Transcontinental Gas Pipe Line Corporation (collectively, the 'Borrowers'), along with various banks, financial institutions, and other institutional lenders, with Citibank, N.A. acting as the administrative agent.

What is the significance of extending the maturity date of the Credit Agreement?

Extending the maturity date to May 1, 2012, is significant as it provides the company with a longer timeframe to repay its debt obligations under this facility. This reduces immediate refinancing risk and offers greater stability and flexibility in financial planning.

Does the filing provide details on the new pricing grid or its impact on interest rates?

No, this 8-K filing states that the amendment modifies the pricing grid, but it does not provide specific details about the new rates or how they compare to the previous grid. Investors would need to refer to the actual Amendment Agreement exhibit or subsequent financial reports for more granular information on pricing and its potential impact on interest expense.

WMB 8-K: Material Agreements

Summary

This 8-K filing from The Williams Companies, Inc. (WMB) reports on a material amendment to their Credit Agreement, originally dated May 1, 2006. The primary changes, effective May 9, 2007, involve modifications to the pricing grid, which will influence the cost of borrowing for the company and its subsidiaries (Williams Partners L.P., Northwest Pipeline Corporation, and Transcontinental Gas Pipe Line Corporation). Importantly, the amendment also extends the maturity date of the credit facility to May 1, 2012. For investors, these changes suggest a proactive approach to managing the company's debt structure and liquidity. The extension of the maturity date provides greater financial flexibility and reduces near-term refinancing risk. While the specific details of the pricing grid adjustments are not provided in this filing, changes to this component typically reflect market conditions, the company's credit profile, and lender requirements, potentially impacting interest expense going forward.

Key Highlights

1Amendment to the Credit Agreement entered into on May 9, 2007.
2The amendment modifies the pricing grid that dictates loan interest rates.
3The maturity date of the Credit Agreement has been extended to May 1, 2012.
4The amendment involves The Williams Companies, Inc. along with subsidiaries Williams Partners L.P., Northwest Pipeline Corporation, and Transcontinental Gas Pipe Line Corporation as borrowers.
5Citibank, N.A. continues to serve as the administrative agent for the credit facility.
6This filing is classified under Item 1.01 (Entry into a Material Definitive Agreement).

WILLIAMS COMPANIES, INC. 8-K Report, Material Agreement (May 15, 2007)

Summary

Key Highlights

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