Williams amends loan terms with Citibank, lifting covenant thresholds

By Susanna Moon

Chicago, July 1 – Williams Cos., Inc. amended its credit agreement last Friday with Citibank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The company amended terms and provisions of ownership of the general partner of Williams Partners LP and the debt of the company’s subsidiaries that act as general partner of Williams Partners and of Access Midstream Partners, LP.

The amendment boosts permitted financial covenant thresholds, so that the ratio of debt to EBITDA may not exceed 4.75 times generally or 5.5 times at the end of any fiscal quarter in which one or more acquisitions for a total aggregate purchase price equal to or greater than $50 million has been executed, and at the end of the two following fiscal quarters.

The amendment also adds a new provision that permits any transaction or series of transactions under which Williams Partners and Access Midstream are merged, consolidated or otherwise combined into one master limited partnership.

Tulsa, Okla.-based Williams finds, produces, gathers, processes and transports natural gas.

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