Oneok Partners enters into $1 billion three-year term loan agreement

By Tali Rackner

Norfolk, Va., Jan. 11 – Oneok Partners, LP entered into a $1 billion three-year unsecured term loan agreement on Monday with Mizuho Bank, Ltd. as administrative agent, according to a press release.

The loan includes a delayed-draw feature that allows the partnership to draw on it for up to 90 days from Jan. 8.

Current interest is Libor plus 130 basis points and is based on the company’s credit rating.

The loan is prepayable in whole or in part at any time without penalty and includes two, one-year extension options. The term loan contains substantially the same covenants as those contained in Oneok’s existing revolving credit facility.

Proceeds will be used for general partnership purposes, including the repayment of existing borrowings.

"This agreement effectively refinances Oneok Partners' 2016 long-term debt maturities and further enhances the partnership's financial flexibility," president and chief executive officer Terry K. Spencer said in a news release.

"The financial commitments we've received under this agreement underscore the strong relationships we have with our banks and their continued support of the partnership."

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

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