Tallgrass Energy Partners entered into a $1.75 billion second amended and restated credit agreement with Wells Fargo Bank as administrative agent and collateral agent.

The amended credit agreement amends and restates TEP’s existing revolving credit facility and extends the maturity date from May 13, 2018 to June 2, 2022.

The amended credit agreement has an accordion feature that will allow Tallgrass to increase the available revolving borrowings under the facility by up to an additional $250 million. In addition, the credit agreement includes a sublimit up to $60 million for swing line loans and a sublimit up to $75 million for letters of credit.

The amended agreement, among other things: reduces the interest rate and relaxes certain covenants, including by increasing certain applicable limits and baskets and provides that, if and when Tallgrass achieves certain specified credit ratings, the liens securing the amended credit agreement will be automatically released, certain restrictive covenants will be significantly relaxed or cease to apply and the applicable margin for both base rate and Eurodollar rate loans and the commitment fee on the unused committed amount will be reduced by specified amounts.

“The additional flexibility and reduced pricing provided in this amended credit facility is a direct result of TEP’s exceptional financial performance over the past four years and its conservative balance sheet,” said Executive Vice President and CFO Gary J. Brauchle. “We continue to appreciate the confidence of our supportive lending banks.”

As of June 2, 2017, Tallgrass had borrowed $1,243 million under the amended credit agreement. The remaining commitments are available for capital expenditures and permitted acquisitions, to provide for working capital requirements and for other general partnership purposes.

Borrowings will bear interest at either a base rate, which will be a rate equal to the greatest of the prime rate, the U.S. federal funds rate plus 0.5% and a one-month reserve adjusted Eurodollar rate plus 1.00%, in each case, plus an applicable margin, or  a reserve adjusted Eurodollar rate, plus an applicable margin.