ONE Gas enters credit agreement for $2.5 billion two-year term loan

By Taylor Fox

New York, Feb. 22 – ONE Gas, Inc. entered into a credit agreement providing a $2.5 billion unsecured term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement matures two years after the loans are funded.

Loans under the agreement will bear interest at Libor plus a margin based on ONE Gas’ debt ratings and the outstanding amount of loans remaining under the credit agreement. The applicable margin ranges from 75 basis points to 150 bps, depending on ratings.

To the extent the outstanding amount is greater than $1 billion, the applicable margin at each pricing level will step up by 25 bps every 90 days following the funding date; provided that once the outstanding amount is less than or equal to $1 billion, any such increase in the applicable margin will cease to be in effect and the applicable margin will again be based just on ratings.

The facility fee ranges from 6 bps to 20 bps, also depending on ratings.

Outstanding loans or commitments under the agreement are required to be prepaid or reduced with the net cash proceeds received by ONE Gas or any of its subsidiaries from certain debt and equity issuances.

Proceeds of the loans will be available for natural gas purchases as a result of the 2021 winter weather events and the repayment of indebtedness.

Bank of America, NA is the administrative agent. BofA Securities, Inc. is the lead arranger and bookrunner.

ONE Gas is a natural gas distribution company based in Tulsa, Okla.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.