Item 1.01. Entry Into a Material Definitive Agreement.
On August 26, 2015, Williams Partners L.P., a Delaware limited partnership (the
"Partnership"), entered into a Credit Agreement (the "Credit Agreement') with
Barclays Bank PLC ("Barclays") as administrative agent. Under the Credit
Agreement, the lenders provided aggregate commitments to the Partnership of $1.0
billion with a maturity date of August 24, 2016.
Each time funds are borrowed under the Credit Agreement, the Partnership may
choose from two methods of calculating interest: a fluctuating base rate equal
to an alternate base rate plus an applicable margin, or a periodic fixed rate
equal to LIBOR plus an applicable margin. The Partnership is required to pay a
commitment fee (currently 0.175 percent) based on the unused portion of the
credit facility. The applicable margin and the commitment fee are determined by
reference to a pricing schedule based on the Partnership's senior unsecured
long-term debt ratings.
The Credit Agreement contains various covenants that limit, among other things,
the Partnership's and its respective material subsidiaries' ability to grant
certain liens supporting indebtedness, the Partnership's ability to merge or
consolidate, sell all or substantially all of its assets in certain
circumstances, enter into certain affiliate transactions, make certain
distributions during an event of default, enter into certain restrictive
agreements and allow any material change in the nature of its business.
The Credit Agreement includes customary events of default. If an event of
default occurs, the lenders will be able to terminate the commitments and
accelerate the maturity of the loans and exercise other rights and remedies.
The foregoing description of the Credit Amendment does not purport to be
complete and is qualified in its entirety by reference to the Credit Amendment,
a copy of which is filed as Exhibit 10.1 hereto and incorporated into this
Item 1.01 by reference.
The Williams Companies, Inc. owns approximately 60 percent of the Partnership,
including all of the 2 percent general partner interest.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On August 26, 2015, the Partnership entered into the Credit Agreement as
described under Item 1.01 above. The description of the Credit Agreement under
Item 1.01 is incorporated into this Item 2.03 by reference.
Item 9.01. Financial Statements and Exhibits
10.1 Credit Agreement dated as of August 26, 2015, among Williams Partners
L.P., the lenders named therein, and Barclays Bank PLC as
Administrative Agent (incorporated by reference to Exhibit 10.1 to
Williams Partners L.P.'s Current Report on Form 8-K (File No.
001-34831) filed on August 28, 2015).
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