ONEOK Partners announced Monday it has entered a $1 billion term agreement to be used for genral partnership purposes including the repayment of existing borrowings.
It is a three-year unsecured loan agreement basically meant to refinance the partnership’s 2016 long-term debt maturities.
“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.”
He said the term loan plus the firm’s $2.4 billion credit facility provide ONEOK Partners with ample liquidity to fund current capital-growth projects.
“ONEOK Partners does not expect the need to access public markets for debt or equity until well into 2017,” added Spencer. The term loan is unsecured and includes a floating interest rate calculated based on the company’s credit rating.
