Business Context and Reporting Period
Company: Western Midstream Partners, LP (WES)
Filing Type: Form 8-K (Current Report)
Date of Report: June 14, 2022
Event: Entry into a Material Definitive Agreement regarding the company's senior unsecured revolving credit facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on debt facility terms and outstanding balances.
- Outstanding Revolving Credit Facility (RCF) Loans: $315.0 million
- Outstanding Letters of Credit: $5.1 million
- Extended Maturity Amount: $1,600 million (portion of the facility)
- New Maturity Date: February 14, 2026
Material Changes Versus Prior Period
On June 14, 2022, Western Midstream Operating, LP entered into a Third Amendment to its RCF dated February 15, 2018. Key changes include:
- Maturity Extension: Extended the maturity date for $1,600 million of loans and commitments to February 14, 2026.
- Extension Options: Added the ability to extend the maturity date by one year on up to two additional occasions.
- Interest Rate Benchmark: Switched fixed-rate loans from LIBOR to the Secured Overnight Financing Rate (SOFR).
- Pricing Grid Adjustment: Added a pricing tier increasing all-in drawn pricing by 0.25% (or 0.5% following a Permitted MLP General Partner Removal) if credit ratings drop below BB/Ba2/BB.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on operations, or specific risk factors beyond the credit rating triggers embedded in the new pricing grid. The document notes that certain lenders and their affiliates provide financial advisory and underwriting services to the company, for which they receive customary fees.
Investor Verification Checklist
- Verify the full text of the Third Amendment (Exhibit 10.1) for specific covenants and conditions.
- Confirm the company's current credit rating to assess if the new pricing tier (0.25% increase) is currently applicable.
- Review the company's most recent 10-Q or 10-K for comprehensive liquidity, leverage, and operating performance metrics not included in this 8-K.