Tallgrass exercises accordion, draws $484 million under revolver

By Marisa Wong

Morgantown, W.Va., Jan. 4 – Tallgrass Energy Partners, LP exercised the $400 million committed accordion feature under its revolving credit facility, increasing total commitments to $1.5 billion, according to an 8-K filing with the Securities and Exchange Commission.

The company exercised the accordion feature on Jan. 4 in connection with the closing of its acquisition of an additional 31.3% interest in Tallgrass Pony Express Pipeline, LLC.

Also on Monday, the company borrowed $484 million under the credit facility to fund the cash portion of the Pony Express transaction and for general partnership purposes.

As previously reported, in November Tallgrass amended its credit agreement dated May 17, 2013 with Barclays Bank plc as administrative agent to increase the amount of the revolver to $1.1 billion and add a $400 million committed accordion feature.

The partnership had a one-time option, exercisable on or prior to May 24, to exercise all or a portion of the committed accordion if, among other things, the company acquires at least an additional 10% equity interest in Pony Express by that time.

Tallgrass is a Leawood, Kan.-based owner, operator, acquirer and developer of midstream energy assets. Pony Express owns and operates the Pony Express System, a crude oil pipeline beginning in Guernsey, Wyo., and ending in Cushing, Okla.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.