Columbia Pipeline obtains $500 million revolver via Wells Fargo

By Toni Weeks

San Luis Obispo, Calif., Feb. 11 – Columbia Pipeline Partners LP entered into a $500 million senior revolving credit facility on Dec. 5 with Wells Fargo Bank, NA as administrative agent.

Under the agreement, which became effective as of Feb. 11, $50 million will be available for the issuance of letters of credit.

Loans bear interest at Libor plus 100 basis points to 165 bps, with the exact rate based on the credit rating of NiSource Inc., as long as NiSource remains a guarantor of the credit facility, or HoldCo, once NiSource is released as a guarantor from the credit facility.

The agreement requires the company to maintain a consolidated total leverage ratio that does not exceed, for four fiscal consecutive quarters, 5.75 times until Dec. 31, 2015, 5.5 times for any period ending after Dec. 31, 2015 and on or before Dec. 31, 2017 and 5 times for any period ending after Dec. 31, 2017, provided that during a specified acquisition period after Dec. 31, 2017 the leverage ratio will not exceed 5.5 times. In addition, until HoldCo (Columbia Pipeline Group, Inc.) has received an investment-grade rating, the company must maintain a consolidated interest coverage ratio of no less than 3 times.

Bank of Tokyo-Mitsubishi UFJ Ltd. is the syndication agent, Credit Suisse Securities (USA) LLC and Royal Bank of Canada are the co-documentation agents, and Wells Fargo Securities, LLC, Bank of Tokyo-Mitsubishi, Credit Suisse Securities and Royal Bank of Canada are the joint lead arrangers and joint bookrunners.

Proceeds may be used for general partnership purposes, including working capital and capital expenditures, including the funding of capital calls.

There were no borrowings under the credit facility at closing.

Houston-based Columbia Pipeline owns and operates natural gas pipelines.

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