Oneok enters into $2.5 billion five-year restated revolving facility

By Marisa Wong

Los Angeles, June 13 – Oneok, Inc. entered into an amended and restated credit agreement on June 10 with Citibank, NA as administrative agent, a swingline lender, a letter-of-credit issuer and a lender for a $2.5 billion revolving unsecured credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes a $100 million letter-of-credit subfacility and a $200 million swingline subfacility.

The company will be able to request an increase in the commitments of up to an additional $1 billion.

The revolver will mature in five years but includes two one-year extension options.

Borrowings bear interest at term SOFR plus an applicable margin of 90 basis points to 135 bps, depending on the company’s debt ratings. The facility fee ranges from 10 bps to 27.5 bps, also based on ratings.

The credit agreement requires that the borrower not permit the leverage ratio to exceed 5.00 to 1.00, provided that the required threshold may be increased to 5.50 to 1.00 during an acquisition adjustment period.

Proceeds from borrowings may be used to provide liquidity for working capital, capital expenditures, acquisitions, mergers, issuance of letters of credit and other general corporate purposes.

Citibank, BofA Securities, Inc., Bank of Nova Scotia, Houston Branch, Barclays Bank plc, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., MUFG Bank, Ltd., TD Securities (USA) LLC and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners.

Bank of America, NA is syndication agent.

Scotiabank, Barclays Bank, JPMorgan Chase, Mizuho, MUFG, Toronto-Dominion Bank, New York Branch and Wells Fargo Bank, NA are documentation agents.

Oneok is a natural gas company based in Tulsa, Okla.

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