DCP Midstream locks up $140 million loan at Libor plus 100-175 bps

By Susanna Moon

Chicago, July 9 - DCP Midstream Partners, LP and DCP Midstream Operating, LP obtained a $140 million term loan at Libor plus 100 basis points to 175 bps, based on the company's debt ratings, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the credit agreement on July 2 with SunTrust Bank as administrative agent.

The Bank of Tokyo-Mitsubishi UFJ, Ltd. and JPMorgan Chase Bank, NA acted as syndication agents; and SunTrust Robinson Humphrey Inc., Bank of Tokyo-Mitsubishi and J.P. Morgan Securities LLC as lead arrangers and book managers.

The term loan will mature on the earlier of the second anniversary, or the date of acceleration of the term loans.

The company borrowed $140 million under the term loan on July 2 and used the proceeds to fund a $200 million contribution to DCP LP Holdings, LLC.

The covenants require the company to keep a maximum leverage ratio of no more than 5 times, except for three fiscal quarters after certain acquisitions. Including the fiscal quarter in which acquisitions are completed, the company's leverage ratio may be less than or equal to 5.5 times.

DCP is a Denver-based company focused on gathering, processing, transporting and marketing natural gas, propane and natural gas liquids.

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