Summary
This 8-K filing from Williams Companies, Inc. (WMB) primarily announces a material definitive agreement related to a new credit facility for its subsidiary, Williams Partners L.P. The Partnership entered into a $1.0 billion Credit Agreement with Barclays Bank PLC as administrative agent, maturing on August 24, 2016. This new credit line provides financial flexibility for the Partnership, with options for calculating interest based on either a fluctuating base rate or a fixed LIBOR rate. The agreement includes standard covenants and events of default, which are typical for such financing arrangements. Investors should note that while WMB owns a significant stake in the Partnership, this credit agreement is directly with Williams Partners L.P. and impacts its financial obligations and operational flexibility.
Key Highlights
- 1Williams Partners L.P. entered into a $1.0 billion Credit Agreement with Barclays Bank PLC.
- 2The credit facility has a maturity date of August 24, 2016.
- 3Borrowing options include fluctuating base rate or fixed LIBOR rates, both plus an applicable margin.
- 4A commitment fee of 0.175% is payable on the unused portion of the credit facility.
- 5The credit agreement contains covenants restricting the Partnership's ability to incur liens, merge, sell assets, engage in affiliate transactions, and make distributions during an event of default.
- 6The agreement includes customary events of default that could lead to commitment termination and loan acceleration.
- 7The Williams Companies, Inc. holds a controlling interest (approximately 60%) in Williams Partners L.P.