The EnLink Midstream companies (EnLink), EnLink Midstream, LLC  (ENLC), the General Partner, and EnLink Midstream Partners, LP  (ENLK), the Master Limited Partnership, announced that ENLK has entered into an $850 million, three-year unsecured term loan agreement and that ENLC has entered into a revolving credit agreement to refinance EnLink's two existing revolving credit facilities into one aggregate facility of $1.75 billion (Refinanced Credit Facility).  

Proceeds from the term loan were used to repay almost all of ENLK's existing revolving credit facility. EnLink expects borrowings and letters of credit under the Refinanced Credit Facility to become available upon the closing of its previously announced simplification transaction, and the proceeds from the Refinanced Credit Facility will be used for general company purposes, including repayment of all existing indebtedness under EnLink's two existing revolving credit facilities and funding of growth capital expenditures. 

"This refinancing gives us the flexibility to satisfy our senior notes maturity obligations in April 2019 without relying on the capital markets. As we continue to execute on our highly efficient growth capital program, these financing vehicles not only align well with our long-term funding strategy, but also enhance EnLink's liquidity and demonstrate strong financial support from our banking partners," said Michael J. Garberding, President and Chief Executive Officer of EnLink.

The $850 million term loan is an unsecured credit facility with an interest rate calculated based on EnLink's debt rating. Borrowings under the term loan currently bear interest at the LIBOR Rate plus 150 basis points. The term loan can be prepaid at any time, in whole or in part, without penalty. The term loan contains substantially the same covenants as those contained in the Refinanced Credit Facility. Upon the closing of the simplification transaction, ENLC will either guarantee the term loan or assume ENLK's obligations under the term loan agreement.

EnLink's new Refinanced Credit Facility is unsecured and, upon the closing of the simplification transaction and the satisfaction of other customary conditions to availability, will permit ENLC to borrow up to $1.75 billion on a revolving credit basis and includes a $500 million letter of credit subfacility. ENLK will guarantee ENLC's obligations under the Refinanced Credit Facility upon the closing of the simplification transaction. The maturity date of the Refinanced Credit Facility is five years from the availability date, and pricing and fees are substantially consistent with ENLK's current revolving credit facility terms.

Merrill Lynch, Pierce, Fenner & Smith Incorporated served as lead arranger and Bank of America, N.A. will be the administrative agent for both the term loan and Revolving Credit Facility. BMO Capital Markets Corp., RBC Capital Markets, Citibank, N.A., and Wells Fargo Securities, LLC served as joint lead arrangers for the facilities.