The $400 million, four-year "B" loan for Williams Companies that will partially refinance a $900 million, 364-day loan led by Berkshire Hathaway was increased to $500 million last week. Pricing on the new loan, led by Lehman Brothers and Bank of America, was also flexed down 25 basis points to LIBOR plus 33/4%, according to a buysider. Williams will make a $1.17 billion payment that will retire the Berkshire Hathaway line, said a Williams' spokesman. He explained that the balance of the line will be refinanced with cash on hand. He declined to comment on the pricing change and the increase.
"Williams has accomplished $2.7 billion of asset sales and has closed on $1.4 billion," he said. Interest on the Berkshire Hathaway line is over 33%. But the spokesman said, "They helped us in a liquidity crisis. Clearly we were on the verge of bankruptcy and now Williams is much more financially viable today." The Berkshire line was secured by substantially all of Williams' exploration-and-production interests in the U.S. Rocky Mountains and the new loan will also be secured against these assets. Williams is scheduled to close the new exploration-and-production loan on or around May 30. Officials at the lead banks did not return calls.