DCP Midstream signs five-year $1 billion revolving credit facility

By Mary-Katherine Stinson

Lexington, Ky., June 15 – DCP Midstream, LP and its wholly owned subsidiary DCP Midstream Operating, LP on June 15 signed a credit agreement with Phillips 66 Co. providing a five-year revolving credit facility totaling up to $1 billion, according to an 8-K filing with the Securities and Exchange Commission.

DCP Operating has the option to increase commitments by up to $500 million, subject to lender approval.

Loans will bear interest at SOFR plus an applicable margin based on the partnership’s or DCP Operating’s senior long-term debt rating.

The applicable margin is based on a five-tiered grid ranging from 107.5 basis points to 187.5 bps.

There is a facility fee, also based on the debt rating, ranging from 17.5 bps and 37.5 bps.

Also on June 15, Phillips 66 completed the previously announced acquisition of all the publicly held common units representing limited partner interests in DCP Midstream for $41.75 per common unit in cash at a total value of approximately $3.8 billion. Phillips 66 has now increased its economic interest in DCP Midstream to 86.8%.

Based in Denver, DCP is a midstream petroleum services provider. Houston-based Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.