Kinder Morgan gets $1 billion term loan, lifts revolver to $5 billion

By Wendy Van Sickle

Columbus, Ohio, Jan. 26 – Kinder Morgan, Inc. obtained a three-year $1 billion unsecured term loan and expanded its revolving credit facility by $1 billion to $5 billion on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.

Barclays Bank plc is the administrative agent of both credit agreements.

Pricing of both facilities is consistent with existing pricing under the company’s expanded revolver: Libor plus 112.5 basis points to 200 bps, depending on Kinder Morgan’s credit rating. The initial margin over Libor is 150 bps.

The term loan was fully drawn at closing. Borrowings may be used for the company’s working capital needs and for other general corporate purposes, including refinancing of upcoming maturities of outstanding long-term indebtedness.

The term loan contains the same covenants as the existing revolver, including a maximum ratio of consolidated net indebtedness to consolidated EBITDA of 6.5 times through Dec. 31, 2017, stepping down to 6.25 times through Dec. 31, 2018 and to 6 times thereafter.

The revolving credit agreement is initially dated Sept. 19, 2014.

Kinder Morgan is a Houston-based pipeline operator.

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