Spectra Energy enters 364-day $2 billion revolving credit agreement

By Wendy Van Sickle

Columbus, Ohio, Oct. 4 – Spectra Energy Capital, LLC entered into a $2 billion 364-day revolving credit agreement Thursday, led by joint lead arrangers and joint bookrunners Citigroup Global Markets Inc. and BMO Capital Markets Corp., according to an 8-K filing with the Securities and Exchange Commission.

Citibank, NA is administrative agent and BMO Harris Bank NA acted as syndication agent.

The credit agreement matures on Sept. 28, 2017 and has a one-year extension option.

Borrowings bear interest at Libor plus a margin of 117 basis points to 180 bps, and the commitment fee ranges from 8 bps to 20 bps, depending on Spectra’s credit ratings.

Proceeds may be used for general company purposes.

The credit agreement requires Spectra Energy Corp. and Spectra Energy Capital to each maintain a ratio of consolidated debt to consolidated capitalization of less than or equal to 65% at the end of each fiscal quarter.

The Hamilton, Bermuda, company is an owner and operator of floating storage and regasification units and liquefied natural gas carriers.

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