Superior Pipeline entered into a credit agreement with BOKF, formerly Bank of Oklahoma, as administrative agent for a five-year, $200 million senior secured revolving credit facility.
According to a related 8-K filing, BOKF and Compass Bank are joint-lead arrangers and lenders. Other lenders include Bank of America, BBT, BMO Harris, CIBC, Comerica Bank and TD Bank.
The credit agreement includes an option to increase the credit amount up to $250 million, subject to certain conditions. The amounts borrowed under the credit agreement bear annual interest at a rate, at Superior’s option, equal to LIBOR plus the applicable margin of 2.00% to 3.25% or the alternate base rate (greater of the federal funds rate plus 0.5%, the prime rate and third day LIBOR plus 1.00%) plus the applicable margin of 1.00% to 2.25%.
The proceeds from the agreement will be used to fund capital expenditures and acquisitions, provide general working capital and issue letters of credit for Superior.