Western Gas amends credit facilities, adds $2 billion 364-day loan

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Western Gas Partners, LP amended its senior secured revolving credit facility and entered into a $2 billion 364-day credit facility on Wednesday, and Western Gas Equity Partners also amended its senior secured revolver, according to an 8-K filing with the Securities and Exchange Commission.

Western Gas Partners amends

Western Gas Partners’ senior secured revolving credit agreement, dated Feb. 15, 2018, with Wells Fargo Bank, NA as administrative agent, was amended to increase the facility size to $2 billion from $1.5 billion, subject to consummation of the borrower’s merger with Western Gas Equity Partners. The $500 million accordion feature will be left in place following the increase.

Also the amendment reflects that on Feb. 15, Western Gas Partners will exercise one of its one-year extension options, pushing back the maturity of the revolver to Feb. 15, 2024.

364-day facility

Western Gas Partners’ 364-day credit facility will be used to fund substantially all the cash portion of the consideration of the merger.

It will mature one year from the anniversary of the merger consummation.

Borrowings will bear interest at Libor plus a margin ranging from 100 basis points to 162.5 bps, based on credit ratings.

There is a ticking fee of 17.5 bps on the commitment amount starting 90 days after the effective date through funding of the credit facility.

Barclays Bank plc, BMO Capital Markets Corp., Mizuho Bank, Ltd., MUFG Bank, Ltd., PNC Bank, NA, U.S. Bank NA and Wells Fargo Bank, NA were the joint lead arrangers and bookrunners.

Branch Banking & Trust Co., Capital One, NA, Deutsche Bank AG New York Branch, Royal Bank of Canada, Societe Generale, Toronto-Dominion Bank, New York Branch and Bank of Nova Scotia, Houston Branch were the documentation agents.

BMO Harris Bank, NA, Mizuho, MUFG, PNC, U.S. Bank, and Wells Fargo were the syndication agents.

Barclays is the administrative agent.

Western Gas Equity amends

Western Gas Equity Partners’ senior secured revolving credit agreement, dated March 14, 2016, with Wells Fargo Bank, NA as administrative agent, was amended to extend the maturity date to the earlier of June 14, 2019 or three business days following the consummation of the merger. Previously, the maturity date was set for March 14, 2019.

The Woodlands, Texas-based company owns, develops and operates midstream energy assets in the United States.

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