DCP Midstream Partners closes $1 billion revolving credit facility

By Aleesia Forni

Columbus, Ohio, Nov. 14 - DCP Midstream Partners LP and its subsidiary, DCP Midstream Operating LP, entered into a $1 billion unsecured revolving credit facility on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the revolver ranges from Libor plus 80 basis points to 165 bps, based on the company's debt rating.

Facility fees are also based on the company's debt rating and range from 15 bps to 35 bps.

Commitments under the facility may be increased by $250 million.

The facility will mature in 2016 and may be extended for two additional one-year periods.

This new facility replaces the company's existing $850 million credit agreement, and initial borrowings under the new facility were used to repay debt under this prior facility.

Under the covenants of the new facility, the company must maintain a maximum leverage ratio of 5.0 to 1.0. During acquisition periods, the leverage ratio must be less than or equal to 5.5 to 1.0.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., Barclays Capital and RBC Capital Markets LLC are joint lead arrangers and joint book managers.

Wells Fargo Bank NA is administrative agent, swingline lender and issuing lender.

Citibank NA is syndication agent, and Bank of America NA, Barclays Bank plc and Royal Bank of Canada are documentation agents.

DCP is a Denver-based company focused on gathering, processing, transporting and marketing natural gas, propane and natural gas liquids.

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