Spectra gets $2 billion revolving agreement, $400 million term loan

By Tali David

Minneapolis, Nov. 1 - Spectra Energy Partners, LP entered into an amended and restated $2 billion revolving credit agreement on Nov. 1, according to an 8-K filed with the Securities and Exchange Commission.

Citibank, NA is administrative agent, JPMorgan Chase Bank, NA and Royal Bank of Scotland plc are syndication agents, Bank of America, NA and Wells Fargo Bank, NA are documentation agents, and J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBS Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc. and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners.

The agreement contains a sublimit of $250 million for issuances of letters of credit, $150 million of which may be denominated in alternative currencies.

The agreement also provides for additional revolving commitments under the agreement, which may consist of incremental term loans. These incremental loans automatically increase the total amount of the revolving commitments upon any prepayment, provided that the total amount of revolving commitments does not exceed $3 billion.

Outstanding borrowings under the agreement mature on Nov. 1, 2018 but may be extended for up to two additional one-year periods.

Interest rates on borrowings under the credit agreement will be based on the company's debt rating. The margin over Libor ranges from 90 basis points to 145 bps.

Also on Nov. 1, Spectra entered into a $400 million senior unsecured term loan credit agreement with Bank of Tokyo-Mitsubishi UFJ, Ltd. as administrative agent, Bank of America as the syndication agent and Merrill Lynch and Bank of Tokyo Mitsubishi as joint lead arrangers and joint bookrunners.

The term loan matures on Nov. 1, 2018.

Interest is equal to Libor plus 75 bps to 150 bps, depending on the company's debt rating.

Proceeds from both agreements may be used general corporate purposes, including liquidity support for outstanding commercial paper and acquisitions.

The natural gas transmission and production company is based in Houston.

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