Williams to amend revolver to grant its limited partnership $75 million of availability

By Sara Rosenberg

New York, May 2 - The Williams Cos. Inc. plans to amend its $1.275 billion revolving credit facility to allow its recently formed limited partnership, Williams Partners LP, to borrow up to $75 million under the facility, according to an S-1 filed with the Securities and Exchange Commission Monday.

The amendment is being done in connection with Williams Partners LP's initial public offering of common units.

The $75 million borrowing limit available to the limited partnership after completion of the IPO can be used for general purposes, including acquisitions, but only to the extent that sufficient amounts remain unborrowed by Williams and its other subsidiaries.

The partnership will pay a 37.5 basis point commitment fee on its portion of the revolver and will have to comply with covenants including ratio of debt to capitalization no greater than 70% for the period after Dec. 31, 2004 through Dec. 31, 2005 and 65% thereafter, ratio of debt to capitalization no greater than 55% for Northwest Pipeline and Transco and ratio of EBITDA to interest, on a rolling four-quarter basis no less than 1.5 for the periods ending Sept. 30, 2004 through March 31, 2005, 2.0 for any period after March 31, 2005 through Dec. 31, 2005 and 2.5 thereafter.

Williams Partners is a Tulsa, Okla.-based gatherer, transporter and processor of natural gas and fractions and stores natural gas liquids.

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