Oneok inks credit facility amendments contingent on ONE Gas spinoff

By Toni Weeks

San Luis Obispo, Calif., Dec. 23 - Oneok, Inc., current subsidiary ONE Gas, Inc. and affiliate Oneok Partners, LP amended their credit agreements on Dec. 20, according to an 8-K filed Monday with the Securities and Exchange Commission.

The amendments are all contingent on the completion of the separation of Oneok's natural gas distribution business into a stand-alone, publicly traded company, which will be called ONE Gas. The amendments will not take effect if the separation transaction has not been completed and other conditions met by March 31, the filing noted.

Oneok revolver amendment

Oneok negotiated an amendment to its credit agreement to provide for a $300 million revolving unsecured credit facility with a $50 million sublimit for letters of credit and a $50 million swingline subfacility. Commitments may be increased by up to an additional $200 million with lender participation.

The agreement will mature in five years and has two one-year extensions.

The facility will be available to provide liquidity for working capital, capital expenditures and fees and expenses incurred in the separation transaction.

Bank of America, NA is the administrative agent, swingline lender, a letter-of-credit issuer and a lender.

ONE Gas credit facility

ONE Gas entered into a credit agreement with Bank of America, NA as administrative agent, swingline lender and LoC issuer that provides for a $700 million unsecured credit facility with a $50 million LoC subfacility and a $100 million swingline subfacility.

The company may increase commitments by up to an additional $500 million with participation from lenders.

The five-year agreement may be extended twice, each time up to a year.

Borrowings may be used for the fees and expenses in connection with the separation transaction, working capital, capital expenditures, acquisitions, mergers and other general corporate purposes.

Oneok Partners agreement

Finally, Oneok Partners, LP amended its credit agreement with Citibank, NA as administrative agent, swingline lender and LoC issuer to provide for a $1.7 billion unsecured revolving credit facility with a $100 million LoC sublimit and a $150 million swingline sublimit.

The facility can be increased by up to $700 million with lender participation.

Proceeds will be used to provide liquidity for working capital, capital expenditures, acquisitions, mergers and other general partnership purposes.

The five-year agreement may be extended twice, each time for one year.

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

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