ONEOK announces new $2.5B revolver

Tulsa, Okla.-based ONEOK this week announced a new $2.5 billion, five-year senior unsecured revolving credit facility, replacing the existing ONEOK and ONEOK Partners credit facilities.  

The new facility will be available upon the completion of the company’s previously announced merger in which ONEOK will acquire all outstanding common units of ONEOK Partners not already owned, and the termination of the existing ONEOK and ONEOK Partners credit facilities.

ONEOK Partners is one of the largest natural gas liquids pipeline companies in the U.S., Kallanish Energy reports.

A syndicate of 22 banks, led by Citibank, Bank of America, Barclays Bank PLC, JPMorgan Chase, Mizuho Bank Ltd., Morgan Stanley Bank, and Wells Fargo Bank committed to ONEOK's new facility. 

The new credit facility will replace the existing $300 million and $2.4 billion revolving credit facilities at ONEOK and ONEOK Partners, respectively. The facility includes options to request an increase in the size of the facility to $3.5 billion and two, one-year extensions, subject to lender approvals.

The facility will be available for working capital, capital expenditures, acquisitions, the issuance of letters of credit and for other general corporate purposes.

Completion of the transaction is expected by July 1.