Summary
Williams Companies, Inc. (WMB) and its subsidiary Williams Partners L.P. (the Partnership) have filed an 8-K detailing the establishment of a new commercial paper program. This program allows the Partnership to issue up to $2.0 billion in short-term, unsecured commercial paper notes. The proceeds from these issuances are intended to fund planned capital expenditures and general Partnership purposes, providing a flexible source of short-term financing. This initiative signifies a strategic move to manage working capital and fund growth initiatives. The commercial paper program offers an alternative to traditional bank financing, potentially allowing for more favorable interest rates depending on market conditions. The maturities of these notes can extend up to 397 days, and the program is backed by the Partnership's existing $2.4 billion revolving credit facility, offering a significant liquidity backstop.
Key Highlights
- 1Williams Partners L.P. has established a new commercial paper program with a maximum aggregate principal amount of $2.0 billion.
- 2The program allows for the issuance of short-term, unsecured commercial paper notes with maturities not exceeding 397 days.
- 3Proceeds from the commercial paper will be used for planned capital expenditures and general Partnership purposes.
- 4This program provides a flexible and potentially cost-effective method for raising short-term capital.
- 5The commercial paper program is supported by the Partnership's $2.4 billion revolving credit agreement, expiring in June 2016, which can be used to repay the commercial paper if necessary.
- 6The issuance of commercial paper is exempt from registration under the Securities Act of 1933, pursuant to Section 4(a)(2).