Finance & Investing | Fundraising | Capital Markets
Kinder Morgan's Credit Facility Expands by $1.0 Billion
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Kinder Morgan, Inc. announced that it had closed on a three-year, unsecured $1 billion term loan and a $1 billion expansion of its unsecured revolving credit facility, increasing the capacity of that facility from $4 billion to $5 billion.
Proceeds from the term loan will be used for general corporate purposes, including the repayment of existing borrowings. Pricing for both facilities is consistent with KMI’s existing revolving credit facility and includes a floating interest rate calculated based on KMI’s credit rating that currently equals the London Interbank Offered Rate (LIBOR) plus 150 basis points. The term loan contains the same covenant package as the existing revolving credit facility. Barclays is the administrative agent for both facilities.
This action provides incremental liquidity, refinances 2016 long-term debt maturities, and further enhances Kinder Morgan’s flexibility with regard to capital markets needs for the foreseeable future.
Kim Dang, Kinder Morgan vice president and chief financial officer, said: "We see no need to access the capital markets in 2016. Combined with continued high-grading of our backlog of growth projects, this insulates us well in the face of sustained unfavorable financial markets. In light of robust, positive projected free cash flow in 2016, the company’s financial outlook remains exceptionally strong."
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