Phillips 66 increases credit facility to $750 million, extends maturity

By Tali Rackner

Norfolk, Va., Oct. 5 – Phillips 66 Partners LP entered into a second amendment to its credit agreement with administrative agent JPMorgan Chase Bank, NA on Monday to increase the amount available to $750 million and extend the termination date to Oct. 3, 2021, according to an 8-K filing with the Securities and Exchange Commission.

The company may increase the overall capacity by up to an additional $250 million, for a total of $1 billion.

The credit agreement may be extended by two additional one-year terms.

Borrowings bear interest at Libor plus 87.5 basis points to 150 bps, based on credit ratings. The commitment fee ranges from 8 bps to 20 bps, also depending on ratings.

Certain financial covenants require Phillips 66 to maintain a maximum ratio of total debt to EBITDA for the prior four fiscal quarters of 5 times as of the last day of each fiscal quarter (and 5.5 times during the specified period following certain acquisitions).

The Houston-based master limited partnership owns, operates, develops and acquires crude oil and refined petroleum products.

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