A new $2.5 billion, five-year senior unsecured revolving credit facility will replace the existing ONEOK and ONEOK Partners LP credit facilities, ONEOK Inc. said in an April 18 press release. 

The new credit facility will replace the existing $300 million and $2.4 billion revolving credit facilities at ONEOK and ONEOK Partners, respectively. The facility includes options to request an increase in the size of the facility to $3.5 billion and two one-year extensions, subject to lender approvals. The facility will be available for working capital, capex, acquisitions, issuance of letters of credit and for other general corporate purposes.

The new facility will be available when the merger transaction—in which ONEOK acquires ONEOK Partners’ outstanding common units that it does not already own, and in which the existing credit facilities are terminated—is complete. This is expected to occur in second-quarter 2017.

A syndicate of 22 banks, led by Citibank NA, Bank of America NA, Barclays Bank Plc, JPMorgan Chase Bank NA, Mizuho Bank Ltd., Morgan Stanley Bank NA and Wells Fargo Bank NA, committed to ONEOK's new facility.

Terry K. Spencer, president and CEO of ONEOK and ONEOK Partners, said this is a positive step in the move forward as one standalone company.