Kinder Morgan enters $650 million term loan, $1.75 billion revolver

By Jennifer Chiou

New York, May 9 - Kinder Morgan, Inc. entered into on May 6 a new $650 million term loan facility and a $1.75 billion revolving credit facility with Barclays Bank plc as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The new loan replaced the company's secured revolving credit facility and secured bridge and term loan credit facility, which were scheduled to mature on Dec. 31, 2014 and May 25, 2015, respectively. They were terminated at closing.

The new term loan matures on May 6, 2017, while the new revolver comes due on May 6, 2019.

The Houston-based pipeline operator said that the loans will bear interest at Libor plus 125 bps to 225 bps.

Unused fees will range from 17.5 bps to 40 bps, depending on the company's ratings, the filing noted.

The company and its restricted subsidiaries must maintain a maximum ratio of consolidated indebtedness to consolidated EBITDA of 4.75x, or, for periods following specified acquisitions, 5.50x.

The joint lead arrangers and joint bookrunners are Barclays Bank plc, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, LTD., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JPMorgan Chase Bank, NA, RBC Capital Markets, RBS Securities Inc. and Wells Fargo Securities, LLC. Citibank NA is the syndication agent. Merrill Lynch, Pierce, Fenner & Smith Inc., Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, LTD., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JPMorgan Chase Bank, NA, RBC Capital Markets, RBS Securities Inc. and Wells Fargo Securities, LLC are co-documentation agents.

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