Tallgrass Energy Partners, LP has increased its revolving credit facility from $850 million to $1.1 billion, and has an option to further increase the revolving credit facility by up to an additional $400 million of commitments to $1.5 billion. The option may be exercised by TEP within six months of the closing of the facility, which was effective Nov. 24, 2015, and concurrent with or after the acquisition of at least an additional 10 percent interest in Pony Express. As of Sept. 30, 2015, TEP had $696 million drawn on its revolving credit facility.
“The increase in our credit facility and the additional committed option are indicative of the conservative and flexible capital structure that TEP has built,” said TEP President and CEO David G. Dehaemers Jr. “As of Sept. 30, 2015, our debt/EBITDA ratio was approximately 2.6x and we have consistently said that our long term debt/EBITDA ratio will target investment grade levels of between 3.0x to 4.0x. This credit facility will provide TEP with additional financing flexibility to continue to grow the partnership and its distributions, even during periods of capital market volatility. This gives us additional financial capacity to execute on our long-term plans and enables us to be patient when the capital markets are unreasonably shortsighted.”