Williams Partners amends leverage covenants under credit agreement

By Tali Rackner

Norfolk, Va., Dec. 23 – Williams Partners LP, Northwest Pipeline LLC and Transcontinental Gas Pipe Line Co., LLC amended their credit agreement with Citibank, NA, on Dec. 18, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, at the end of any fiscal quarter, Williams must maintain a maximum ratio of consolidated debt to consolidated EBITDA of: (a) 5.75 times for the quarters ending Dec. 31, March 31, 2016 and June 30, 2016; (b) 5.5 times for the quarters ending Sept. 30, 2016 and Dec. 31, 2016; and (c) 5 times thereafter, provided that, with respect to any fiscal quarter ending on or after March 31, 2017, if any borrower makes a “specific acquisition” in that fiscal quarter, the maximum leverage ratio must not exceed 5.5 times at the end of that quarter and the two quarters immediately thereafter.

Williams Partners is a master limited partnership that owns interests in three natural gas pipelines. It is 60% owned by Williams Cos., Inc. Northwest Pipeline is a Salt Lake City-based transmitter of natural gas. Transcontinental Gas is a Tulsa, Okla.-based interstate natural gas transmission company and subsidiary of Williams.

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