How did the merger affect Williams Companies, Inc. (WMB)?

The merger primarily involved its subsidiary, Williams Partners L.P. (WPZ). As a result of the merger, WMB's stake in the combined entity was adjusted, and its credit agreement was amended to reflect its ongoing financial arrangements.

What are the key changes to Williams Partners L.P.'s credit facilities?

The credit facilities for the combined Williams Partners L.P. (formerly ACMP and WPZ) were significantly restructured. A Second Amended & Restated Credit Agreement with Citibank was entered into, increasing aggregate commitments to $3.5 billion (potentially $4.0 billion) and extending maturity to February 2020. Additionally, a new $1.5 billion Credit Agreement with Barclays was established, and the commercial paper program was expanded to $3.0 billion.

What is the impact of these credit agreement changes on the company's financial flexibility?

The amendments and new credit agreements indicate increased borrowing capacity and extended maturities for both Williams Companies and the combined Williams Partners L.P. This provides greater financial flexibility for operations, capital expenditures, and potential future growth, with terms that can adjust based on credit ratings.

WMB 8-K: Material Agreements & Financial Events

Q: What was the primary event reported in this 8-K filing?

The primary event reported is the completion of the merger between Williams Partners L.P. (WPZ) and Access Midstream Partners, L.P. (ACMP). Following the merger, ACMP was renamed Williams Partners L.P., and WPZ became its wholly owned subsidiary.

Summary

This 8-K filing from The Williams Companies, Inc. (WMB) on February 3, 2015, primarily details the completion of a significant merger transaction involving Williams Partners L.P. (WPZ) and Access Midstream Partners, L.P. (ACMP). Following the merger, WPZ became a subsidiary of ACMP, which was then renamed Williams Partners L.P. The filing also announces material updates to Williams Companies' and the newly formed Williams Partners L.P.'s credit facilities and commercial paper programs, impacting their financial flexibility and borrowing capacity. Key financial events include the entry into a Second Amended & Restated Credit Agreement for Williams Companies, extending its maturity to 2020 and potentially 2022, with adjusted pricing based on debt ratings. Concurrently, the surviving partnership (formerly ACMP and WPZ) secured a significantly expanded and restated credit facility totaling up to $3.5 billion (with potential for $4.0 billion), also maturing in 2020 and extendable. Furthermore, a new $1.5 billion credit agreement with Barclays was established for the surviving partnership, alongside an amendment to its commercial paper program, increasing its capacity to $3.0 billion. These actions collectively provide robust liquidity and financial structure for the combined entities.

Key Highlights

1Completion of the merger between Williams Partners L.P. (WPZ) and Access Midstream Partners, L.P. (ACMP), resulting in WPZ becoming a subsidiary of ACMP, which was then renamed Williams Partners L.P.
2The Williams Companies, Inc. entered into a Second Amended & Restated Credit Agreement, extending its maturity to February 2, 2020 (extendable to 2022) and potentially lowering interest costs based on credit ratings.
3The surviving Williams Partners L.P. (post-merger) secured a significantly enhanced credit facility, increasing total commitments to $3.5 billion (up to $4.0 billion potential) with a maturity of February 2, 2020 (extendable to 2022).
4A new $1.5 billion Credit Agreement was entered into by the surviving Williams Partners L.P. with Barclays Bank PLC, maturing initially in August 2015 (extendable to February 2016).
5The surviving Williams Partners L.P. amended and restated its commercial paper program, increasing its capacity to $3.0 billion for general corporate purposes and capital expenditures.
6Termination of the Access Midstream Partners, L.P. (ACMP) credit agreement following the merger, replaced by the new credit facilities for the surviving entity.

WILLIAMS COMPANIES, INC. 8-K Report, Material Agreement (Feb 3, 2015)

Summary

Key Highlights

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