HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced that it had closed on a
three-year, unsecured $1 billion term loan and a $1 billion expansion of
its unsecured revolving credit facility, increasing the capacity of that
facility from $4 billion to $5 billion. Proceeds from the term loan will
be used for general corporate purposes, including the repayment of
existing borrowings. Pricing for both facilities is consistent with
KMI’s existing revolving credit facility and includes a floating
interest rate calculated based on KMI’s credit rating that currently
equals the London Interbank Offered Rate (LIBOR) plus 150 basis points.
The term loan contains the same covenant package as the existing
revolving credit facility. Barclays is the administrative agent for both
facilities.
This action provides incremental liquidity, refinances 2016 long-term
debt maturities, and further enhances Kinder Morgan’s flexibility with
regard to capital markets needs for the foreseeable future. “We see no
need to access the capital markets in 2016,” said Kim Dang, Kinder
Morgan vice president and chief financial officer. She further noted
that “combined with continued high-grading of our backlog of growth
projects, this insulates us well in the face of sustained unfavorable
financial markets. In light of robust, positive projected free cash flow
in 2016, the company’s financial outlook remains exceptionally strong.”
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure
company in North America. It owns an interest in or operates
approximately 84,000 miles of pipelines and approximately 165 terminals.
The company’s pipelines transport natural gas, gasoline, crude oil, CO2
and other products, and its terminals store petroleum products and
chemicals, and handle bulk materials like coal and petroleum coke. For
more information please visit www.kindermorgan.com.
Important Information Relating to
Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities and Exchange Act of 1934. Generally the
words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,”
“estimates,” and similar expressions identify forward-looking
statements, which are generally not historical in nature.
Forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although Kinder Morgan believes
that these forward-looking statements are based on reasonable
assumptions, it can give no assurance that any such forward-looking
statements will materialize. Important factors that could cause actual
results to differ materially from those expressed in or implied from
these forward-looking statements include the risks and uncertainties
described in Kinder Morgan’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year-ended December 31, 2014 (under the headings “Risk Factors” and
“Information Regarding Forward-Looking Statements” and elsewhere) and
its subsequent reports, which are available through the SEC’s EDGAR
system at www.sec.gov
and on our website at ir.kindermorgan.com. Forward-looking statements
speak only as of the date they were made, and except to the extent
required by law, Kinder Morgan undertakes no obligation to update any
forward-looking statement because of new information, future events or
other factors. Because of these risks and uncertainties, readers should
not place undue reliance on these forward-looking statements.