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Western Gas ups revolver size to $2.0B to fund midstream deal with Anadarko

Western Gas Partners LP on Dec. 19 entered into an amended senior unsecured revolver agreement increasing the partnership's revolver to $2.0 billion, from the previous $1.5 billion, to help fund its deal with parent company Anadarko Petroleum Corp.

The partnership, which recently agreed to buy all midstream assets of oil and gas producer Anadarko for $4.02 billion, left the $500 million accordion feature of the revolving credit facility unexercised, according to a Dec. 20 SEC filing. Western Gas also exercised its option to extend the maturity date of the revolver to Feb. 15, 2024, effective Feb. 15, 2019. The facility had $220 million outstanding as of Dec. 19.

The partnership plans to use proceeds from the increased revolver to fund almost all of the cash consideration related to the acquisition of Anadarko's midstream assets. Anadarko will receive $2.01 billion in cash and new Western Gas equity as part of the deal.

Western Gas also agreed to a merger deal with Western Gas Equity Partners LP, which includes Western Gas Equity acquiring all of Western Gas Partners' publicly held common units and all those owned by Anadarko in a unit-for-unit, tax-free exchange.