Item 1.01. Entry into a Material Definitive Agreement
Credit Agreement
On
Pursuant to the Credit Agreement, the Lenders have committed to provide advances
up to an aggregate principal amount of
Under the Credit Agreement, the obligations of the Partnership are unsecured. The Credit Agreement initially will not be guaranteed by any of the Partnership's subsidiaries.
Interest accrues on advances at a base rate, term SOFR or daily simple SOFR, based on the election of the Partnership for each interest period, plus an applicable rate. The issuing fees for letters of credit are also based on an applicable rate. The applicable rate used in connection with advances, letters of credit and commitment fees is based on the then applicable senior unsecured credit rating of the Partnership. The applicable rate for SOFR rate loans and letter of credit fees ranges from 1.125% to 2.000% and the applicable rate for base rate loans ranges from 0.125% to 1.000%. No incremental borrowings were made by the Partnership at the closing of the Credit Agreement. Proceeds of the borrowings under the Credit Agreement may be used for working capital, capital expenditures and other lawful partnership purposes.
The Credit Agreement contains customary representations, warranties, covenants and events of default, including a change of control event of default and limitations on incurrence of liens, new lines of business, mergers, transactions with affiliates and restrictive agreements. The Credit Agreement also includes covenants limiting, as of the last day of each fiscal quarter, the Leverage Ratio, which is defined therein as the ratio of Consolidated Funded Indebtedness (as defined in the Credit Agreement) outstanding on the specified date to Consolidated EBITDA (as defined in the Credit Agreement) of the Partnership, for the preceding four fiscal quarter period, to not more than 5.00 to 1.00; provided that the maximum ratio is increased to 5.50 to 1.00 during Specified Acquisition Periods (as defined in the Credit Agreement). During the continuance of an event of default, the Lenders may take a number of actions, including declaring the entire amount then outstanding under the Credit Agreement due and payable.
The foregoing description of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Credit Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated in this Item 1.01 by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item 1.01 relating to the Credit Agreement under the heading "Credit Agreement" is hereby incorporated into this Item 2.03 by reference.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit Number Description 10.1 Amended and Restated Credit Agreement, dated as ofApril 11, 2022 , by and amongEnergy Transfer LP , as borrower,Wells Fargo Bank, National Association ., as administrative agent, swingline lender and an LC issuer and the lenders party thereto. 104 Cover Page Interactive Data File (embedded within the inline XBRL document).
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