ONEOK Partners LP (NYSE: OKS) has entered into a $1 billion three-year unsecured term loan agreement, which will be used for general partnership purposes, including the repayment of existing borrowings.
The term loan is unsecured and includes a floating interest rate calculated based on ONEOK Partners' credit rating, which is currently 130 basis points, or 1.3%, over the London Interbank Offered Rate (LIBOR). The loan includes a delayed draw feature that allows the partnership to draw on it for up to 90 days from Jan. 8.
The loan is prepayable in whole or in part at any time without penalty and includes two one-year extension options. The term loan contains substantially the same covenants as those contained in the partnership's existing revolving credit facility.
Mizuho Bank Ltd. serves as the administrative agent for the term loan agreement.