TULSA, Okla., Jan. 11, 2016 /PRNewswire/ — ONEOK Partners, L.P. (NYSE: OKS) today announced that it has entered into a $1 billion three-year unsecured term loan agreement, which will be used for general partnership purposes, including the repayment of existing borrowings.
“This agreement effectively refinances ONEOK Partners’ 2016 long-term debt maturities and further enhances the partnership’s financial flexibility,” said Terry K. Spencer, president and chief executive officer of ONEOK Partners. “The financial commitments we’ve received under this agreement underscore the strong relationships we have with our banks and their continued support of the partnership.”
“The term loan, our commercial paper program and our $2.4 billion credit facility provide ONEOK Partners with ample liquidity to fund current capital-growth projects,” added Spencer. “ONEOK Partners does not expect the need to access public markets for debt or equity until well into 2017.”
The term loan is unsecured and includes a floating interest rate calculated based on ONEOK Partners’ credit rating, which is currently 130 basis points, or 1.3 percent, over the London Interbank Offered Rate (LIBOR). The loan includes a delayed draw feature that allows the partnership to draw on it for up to 90 days from Jan. 8, 2016. The loan is prepayable in whole or in part at any time without penalty and includes two, one-year extension options. The term loan contains substantially the same covenants as those contained in the partnership’s existing revolving credit facility.