HOUSTON, Oct. 22, 2002 — Kinder Morgan Energy Partners, L.P. and Kinder Morgan Inc. announced they have renewed $1.66 billion of credit facilities and expect to close on additional commitments to bring the total to $2.0 billion.
KMP renewed its 364-day and multi-year credit facilities with essentially the same credit spreads and fees as its prior facilities. KMP has closed on approximately $906 million of capacity — $494 million in 364-day facility and $412 million in the multi-year facility – and expects to close on an additional $194 million of commitments in the next several weeks.
KMP’s credit covenants in the new facilities allow for more flexibility than those in its prior facilities. The prior facilities limited debt as a multiple of EBITDA to 4.0 while the new facilities have increased that limit to 5.0. The facilities are undrawn and KMP currently has approximately $110 million of commercial paper outstanding.
KMI also renewed its 364-day and multi-year credit facilities with essentially the same credit spreads and fees as its prior facilities. KMI has closed on approximately $758 million of capacity — $421 million in 364-day facility and $337 million in the multi-year facility – and expects to close on an additional $142 million in the next several weeks.
KMI’s covenants were unchanged. The facilities are undrawn and KMI currently has approximately $140 million of commercial paper outstanding following the maturity of a $200 million debt issue earlier this week.
Kinder Morgan Energy Partners, L. P. is the largest publicly traded pipeline limited partnership in the U.S. in terms of market capitalization and the largest independent refined petroleum products pipeline system in the U.S. in terms of volumes delivered. KMP owns or operates more than 25,000 miles of pipelines and over 70 terminals.
Its pipelines transport more than two million barrels per day of gasoline and other petroleum products and up to 7.8 billion cubic feet per day of natural gas. Its terminals handle over 55 million tons of coal and other dry-bulk materials annually and have a liquids storage capacity of approximately 55 million barrels for petroleum products and chemicals. KMP is also the leading provider in the U.S. of CO2, which is used in enhanced oil recovery projects.
The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI – News), one of the largest energy transportation and storage companies in America. Combined, the two companies have an enterprise value of approximately $17 billion.
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