Regency increases revolver to $1.5 billion ahead of PVR acquisition

By Angela McDaniels

Tacoma, Wash., Feb. 21 - Regency Energy Partners LP said that Regency Gas Services LP entered into an amended and restated credit agreement on Tuesday, increasing the revolving commitments to $1.5 billion from $1.2 billion.

The increase included a $200 million increase in the uncommitted incremental facility, lifting that facility to $500 million from $300 million, according to an 8-K filing with the Securities and Exchange Commission.

The other material changes include the following:

• An increase in the swingline commitments to $50 million from $25 million;

• The addition of provisions allowing some debt - specifically, $300 million 8¼% senior notes due 2018 issued by Penn Virginia Resource Partners, LP and Penn Virginia Resource Finance Corp. in April 2010 - to be incurred in connection with the merger of PVR Partners, LP with and into Regency Energy Partners;

• An increase in the thresholds for cross defaults and judgment defaults to $50 million from $10 million; and

• The addition of provisions clarifying that no pipeline purchased or acquired by the borrower or any guarantor is required to be pledged to secure the obligations under the credit agreement unless the purchase or construction price, as applicable, is $25 million or more.

Wells Fargo Bank, NA is the administrative agent.

Regency Energy Partners is a Dallas-based midstream energy partnership focused on natural gas and natural gas liquids.

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