Questar extends revolver maturity to 2020, enters 364-day facility

By Marisa Wong

Morgantown, W.Va., Nov. 24 – Questar Corp. amended its senior unsecured amended and restated multi-year revolving credit agreement dated April 19, 2013 to extend the maturity date to Nov. 20, 2020, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, completed on Nov. 20, the company has the option to extend the term for two successive one-year periods.

The amended credit agreement provides for up to $500 million of advances outstanding at any one time, with an option to request increases in commitments to an aggregate amount of up to $750 million.

In addition, the credit agreement provides for a $50 million sublimit for letters of credit.

Interest accrues at Libor plus an applicable margin based on the company’s debt rating. The applicable margin ranges from 62.5 basis points to 112.5 bps and is initially 87.5 bps.

The commitment fee ranges from 5 bps to 15 bps and is initially 8 bps.

Loan proceeds may be used for general corporate purposes, including to provide liquidity for the company’s commercial paper program, to finance working capital and to refinance existing debt.

The credit agreement includes a covenant limiting the amount of aggregate funded debt based on a ratio of total consolidated funded debt to EBITDA, a covenant that limits aggregate funded debt of the company’s subsidiaries based on a ratio of consolidated funded debt to book capitalization and a change-of-control event of default.

Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are the joint lead arrangers and joint lead bookrunners with Wells Fargo Bank, NA as administrative agent, JPMorgan Chase Bank, NA as syndication agent and Barclays Bank plc, Credit Suisse AG, Cayman Islands Branch, Mizuho Bank, Ltd., Bank of Tokyo-Mitsubishi UFJ, Ltd. and U.S. Bank NA as documentation agents.

364-day revolver

Also on Nov. 20, the company entered into a $250 million senior unsecured revolving credit agreement due Nov. 18, 2016.

Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are the joint lead arrangers and joint lead bookrunners with Wells Fargo Bank, NA as administrative agent, JPMorgan Chase Bank, NA as syndication agent and Barclays Bank plc, Credit Suisse AG, Cayman Islands Branch, Mizuho Bank, Ltd., Bank of Tokyo-Mitsubishi UFJ, Ltd. and U.S. Bank NA as documentation agents.

Interest on the 364-day facility is equal to Libor plus an applicable margin based on the company’s debt rating. The applicable margin ranges from 62.5 bps to 112.5 bps. Pricing is initially Libor plus 87.5 bps.

The commitment fee ranges from 4 bps to 12.5 bps and is initially 6 bps.

Proceeds from the new revolver may be used for general corporate purposes, including to provide liquidity for the company’s commercial paper program and to finance working capital.

The agreement contains a covenant limiting the amount of aggregate funded debt based on a ratio of total consolidated funded debt to EBITDA, a covenant that limits aggregate funded debt of the company’s subsidiaries based on a ratio of consolidated funded debt to book capitalization and a change-of-control event of default.

Questar is a Salt Lake City-based energy company focused on natural gas.

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