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DPM credit facility confirmed at $1.8 b up from $1.25 bOn March 23, 2015, DCP Midstream Partners, LP (the "Partnership") was advised by DCP Midstream, LLC ("DCP Midstream"), the owner of the Partnership's general partner, that DCP Midstream had entered into a First Amendment to Amended and Restated Credit Agreement (the "Credit Facility Amendment"), that amends DCP Midstream's May 2014 Amended and Restated Revolving Credit Agreement with various financial institutions. The Credit Facility Amendment provides total revolver borrowing capacity of $1.8 billion and matures in March 2017. Certain subsidiaries of DCP Midstream, other than the Partnership, will provide guarantees of borrowings under this facility. In addition, borrowings under this facility will be secured with a pledge of DCP Midstream's limited partner and general partner ownership interests in the Partnership as collateral. No physical assets of DCP Midstream are pledged as collateral for borrowings under this facility. The Credit Facility Amendment adds a calculation of consolidated secured leverage ratio of not more than 3.25 to 1.00 and temporarily suspends until December 31, 2015 the calculation of the consolidated leverage ratio financial covenant of not more than 5.00 to 1.00. Indebtedness under the Credit Facility Amendment bears interest at either: (1) LIBOR, plus an applicable margin of 2.50%; or (2) (a) the base rate which shall be the higher of Wells Fargo Bank N.A.'s prime rate, the Federal Funds rate plus 0.50% or the LIBOR Market Index rate plus 1% plus (b) an applicable margin of 1.50%. The Credit Facility Amendment incurs an annual facility fee of 0.50%. This fee is paid on drawn and undrawn portions of this facility.
10K Amended and Restated Credit Agreement On May 1, 2014, we entered into a $1.25 billion amended and restated senior unsecured revolving credit agreement that matures on May 1, 2019,
or the Amended and Restated Credit Agreement. The Amended and Restated
Credit Agreement replaced our previous Credit Agreement dated as of
November 10, 2011, which had a total borrowing capacity of $1 billion and would have matured on November 10, 2016.
The Amended and Restated Credit Agreement will be used for working
capital requirements and other general partnership purposes including
acquisitions. Indebtedness under the Amended and Restated Credit Agreement bears interest at either: (1) LIBOR, plus an applicable margin of 1.275%
based on our current credit rating; or (2) (a) the base rate which
shall be the higher of Wells Fargo Bank N.A.’s prime rate, the Federal
Funds rate plus 0.50% or the LIBOR Market Index rate plus 1%, plus (b) an applicable margin of 0.275% based on our current credit rating. The Amended and Restated Credit Agreement incurs an annual facility fee of 0.225% based on our current credit rating. This fee is paid on drawn and undrawn portions of the $1.25 billion Amended and Restated Credit Agreement. As of December 31, 2014, the unused capacity under the Amended and Restated Credit Agreement was $1,249 million,
which is net of letters of credit. Our borrowing capacity may be
limited by the Amended and Restated Credit Agreement’s financial
covenant requirements. Except in the case of a default, amounts borrowed
under our Amended and Restated Credit Agreement will not become due
prior to the May 1, 2019 maturity date. |
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Msg # | Subject | Author | Recs | Date Posted |
48501 | Re: OOPS should have read DCP LLC credit facility confirmed at $1.8 b and not DPM | moneyonomics | 0 | 3/27/2015 3:07:31 PM |