Oneok lines up new $2.5 billion revolver to take effect after merger

By Wendy Van Sickle

Columbus, Ohio, April 18 – Oneok Inc. arranged a $2.5 billion five-year senior unsecured revolving credit facility, according to a press release.

The new credit facility will replace the existing $300 million and $2.4 billion revolving credit facilities at Oneok and Oneok Partners, respectively.

The new revolver will be available upon the completion of the previously announced merger transaction, under which Oneok will acquire all the outstanding common units of Oneok Partners that it does not already own, and the termination of the existing credit facilities.

The transaction is expected to close in the second quarter of 2017.

A syndicate of 22 banks, led by Citibank, NA, Bank of America, NA, Barclays Bank plc, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., Morgan Stanley Bank, NA and Wells Fargo Bank, NA, committed to the new facility.

Oneok will have the option to request an increase in the size of the facility to $3.5 billion and two one-year extensions, subject to lender approvals.

Proceeds will be available for working capital, capital expenditures, acquisitions, the issuance of letters of credit and other general corporate purposes.

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

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