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Williams looking at refinancing $900 million loan with smaller facility
By Sara Rosenberg
New York, April 1 - Williams Companies Inc. is currently "evaluating a refinancing" of its $900 million bank debt with a facility at the exploration and production level somewhere between $300 and $800 million in size, a company spokesman told Prospect News on Tuesday.
The company is looking at the possibility of refinancing due to the current low interest rate environment, the spokesman explained.
There are no further details on the possible refinancing at this point, including possible lead banks, rates, timing and whether or not the loan will be secured, the spokesman added.
The existing $900 million facility, which matures on July 25, 2003, is secured by substantially all of the oil and gas interests of Barrett Resources and carries an interest rate of Libor plus 400 basis points, according to a filing with the Securities and Exchange Commission.
As was previously announced, the company hopes to reduce debt by $3 billion in 2003, with much of the funds for this debt reduction coming from asset sales, the spokesman said. Presently, the company is hoping to close on $4 billion in asset sales this year in an attempt to improve liquidity.
During the summer of 2002, the company obtained the $900 million senior secured credit agreement with a group of investors led by Lehman Brothers Inc. and Berkshire Hathaway. In addition to the $900 million loan, the company closed on a $1.1 billion credit agreement that provides for an amended $700 million secured revolver and a $400 million letter of credit facility.
Williams is Tulsa, Okla. transporter and seller of natural gas and petroleum products.
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