Oneok Signs $1 Billion Credit Facility

Tuesday, June 28th 2005, 10:30 am

By: News On 6

TULSA, Okla. (AP) _ Energy company Oneok Inc. on Tuesday said it has arranged a $1 billion, 364-day bridge financing credit facility with a group of 13 banks, in part to pay for a recent $1.35 billion acquisition.

Citigroup Global Markets Inc. and UBS Securities are co-managing the facility.

In May, Oneok agreed to buy natural gas liquids assets from several Koch companies for $1.35 billion. The new $1 billion credit line will be used to fund a portion of the deal's short-term financing, Oneok said, while the rest will come from the company's commercial paper program or loans under its existing $1 billion, five-year credit agreement.

The company said it expects permanent financing to come from a combination of cash, long-term debt issuance and proceeds from the settlement of equity units in February 2006.