DCP lifts revolver to $1.4 billion, amends financial covenant

By Marisa Wong

Morgantown, W.Va., Feb. 24 – DCP Midstream, LP amended its amended and restated credit agreement dated May 1, 2014 with Mizuho Bank, Ltd. as administrative agent to increase the aggregate commitments under the unsecured revolver to about $1.4 billion, according to an 8-K filing with the Securities and Exchange Commission.

In addition, Friday’s amendment allows for unrestricted cash and cash equivalents to be netted against consolidated indebtedness for purposes of calculating the partnership’s consolidated leverage ratio.

The amendment also modifies the financial covenant such that the partnership’s maximum consolidated leverage ratio as of the end of any fiscal quarter is not to exceed 5.75 to 1.0 for the quarters ending March 31 through Dec. 31, 2017; 5.50 to 1.0 for the quarter ending March 31, 2018; 5.25 to 1.0 for the quarter ending June 30, 2018; and 5.00 to 1.0 for the quarters after that, provided that if there is a qualified acquisition during any fiscal quarter ending June 30, 2018 or after, the maximum consolidated leverage ratio is not to exceed 5.50 to 1.0 at the end of that quarter and at the end of the two fiscal quarters immediately after that.

DCP Midstream is a Denver-based joint venture between Spectra Energy and ConocoPhillips.

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