Chesapeake Midstream to amend and restate revolver in connection with common units sale

By Sara Rosenberg

New York, Feb. 16 - Chesapeake Midstream Partners LP plans to amend and restate its $500 million revolving credit facility to allow for its initial public offering of common units, according to an S-1 filed with the Securities and Exchange Commission on Tuesday.

Proceeds from its common units offering will be used to repay borrowings under the revolver, fund future capital expenditures and working capital, and for other general purposes.

The revolver, which matures in September 2012, will carry pricing that can range from Libor plus 300 basis points to 375 bps based on leverage, with a 50 bps commitment fee.

Covenants will include a consolidated leverage ratio of not more than 3.50 to 1 and an interest coverage ratio of not less than 3.00 to 1.

At completion of the offering, the company expects to have no outstanding borrowings under the revolver.

Chesapeake is an Oklahoma City-based owner, operator, developer and acquirer of natural gas gathering systems and other midstream energy assets.

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