DCP Midstream restates credit agreement for $1.25 billion revolver

By Marisa Wong

Madison, Wis., May 7 - DCP Midstream Partners, LP and wholly owned subsidiary DCP Midstream Operating, LP amended and restated its credit agreement dated Nov. 10, 2011 for an up to $1.25 billion unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

DCP entered into the amended and restated credit agreement on May 1 with Wells Fargo Bank, NA as administrative agent; Wells Fargo Securities, LLC, RBS Securities Inc., Citigroup Global Markets, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Morgan Stanley MUFG Loan Partners, LLC as joint lead arrangers and joint bookrunners; Royal Bank of Scotland plc as syndication agent; Citibank, NA, JPMorgan Chase Bank, NA, Royal Bank of Canada, SunTrust Bank and Morgan Stanley MUFG Loan Partners, LLC as documentation agents; and 12 other banks as lenders.

The company has the option to increase the revolving loan commitment by an aggregate principal amount of up to $500 million.

The credit agreement provides sub-limits for swingline loans and for the issuance of letters of credit.

The credit agreement will mature on May 1, 2019 and includes two one-year extension options.

Interest is equal to Libor plus an applicable margin based on the partnership's senior unsecured long-term debt rating. The applicable margin ranges from 100 basis points to 165 bps.

There is also a facility fee ranging from 12.5 bps to 35 bps.

Loans will be used for working capital and for other general partnership purposes, including acquisitions.

The amended credit agreement contains covenants including a maximum consolidated leverage ratio of less than or equal to 5.0 to 1.0, provided that for three fiscal quarters subsequent to certain acquisitions the partnership's consolidated leverage ratio may be less than or equal to 5.5 to 1.0.

The prior facility, which had provided a total borrowing capacity of up to $1 billion and would have matured in November 2016, was terminated on May 1.

The unit of DCP Midstream LLC is a Denver-based joint venture between Spectra Energy and ConocoPhillips.

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