Williams gets new $400 million credit facility

By Sara Rosenberg

New York, April 14 - The Williams Cos. Inc. closed on a new $400 million five-year unsecured credit facility. Citigroup was the lead bank on the deal.

The facility will be used primarily to issue letters of credits and will act as an alternative source of funding for the company's existing line of credit that requires cash collateralization, freeing up approximately $400 million, according to a company news release.

Funds that were previously used for cash collateralization are now anticipated by the company to be used for general corporate purposes, including future debt repayments.

"The successful completion of the new credit facility is the first of two steps in the company's planned replacement of its credit facilities. These actions are designed to unlock additional cash that can be used to retire a portion of our long-term debt ahead of schedule," said Don Chappel, chief financial officer, in the release.

The company is also looking into replacing its $800 million cash-collateralized revolver with a more traditional secured revolving credit facility.

Williams is a Tulsa, Okla., finder, producer, gatherer, processor and transporter of natural gas.

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