Williams Energy Partners gains credit line

Journal Record, The (Oklahoma City), Aug 7, 2003 by Journal Record staff

Williams Energy Partners on Wednesday said it has an agreement for a new term loan and revolving credit facility.

The agreement completes the refinancing of its previous term loan and revolving credit facility, which was scheduled to mature in February.

The new credit facility provides for a $90 million term loan that matures in August 2008 and carries an interest rate based on the Eurodollar rate plus 2.375 percent. Proceeds were used to repay $90 million owed on the previous term loan. As a result, the Tulsa-based partnership's total amount of outstanding debt remains unchanged.

The credit facility also includes an $85 million revolving credit facility. The revolving credit commitments terminate in August 2007 and carry an interest rate based on the Eurodollar rate plus 1.75 percent. No funds were initially borrowed under the revolver.

Obligations under the new credit facility are secured by the partnership's equity interests in its independent petroleum products terminals and its ammonia pipeline system.

"The current strength of the credit markets made this an ideal time to refinance our debt," said John Chandler, chief financial officer. "This credit facility provides the partnership with the additional debt capacity and flexibility it needs to fund future acquisition opportunities."

Lehman Brothers Inc. served as the lead financial adviser and sole book-running manager for this transaction.