Kinder Morgan refinances via $4.5 billion five-year, 364-day loans

By Susanna Moon

Chicago, Nov. 21 – Kinder Morgan Inc. refinanced its loan with a $4 billion five-year credit facility and a $500 million 364-day credit facility.

Interest on the facilities will be Libor plus 100 basis points to 200 bps, based on the company’s credit ratings.

The company entered into the credit agreements on Nov. 16 with Barclays Bank plc as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The five-year facility may be upsized up to $5 billion and includes a $500 million sublimit for the issuance of letters of credit.

The facilities replaced the company’s $5 billion revolving facility dated Sept. 19, 2014 with Barclays as administrative agent, which was repaid and terminated at closing.

Borrowings under the revolver may be used for working capital and for other general corporate purposes.

The new covenants include a maximum ratio of consolidated net debt to consolidated EBITDA of 5.5 times for any fiscal-quarter period.

Other negative covenants include restrictions on the company’s and certain of its subsidiaries’ ability to incur debt, grant liens, make fundamental changes or engage in transactions with affiliates.

Kinder Morgan is a Houston-based pipeline transportation and energy storage company.

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