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Atlas announces amended and upsized revolving credit facility

World Pipelines,

Atlas Pipeline Partners, L.P. has announced that the Partnership has successfully amended its revolving credit facility, significantly increasing the Partnership's borrowing capacity, extending the term of the facility, and lowering borrowing costs.

The new five year facility matures on 28 August, 2019, has an initial borrowing capacity of US$ 800 million and contains an accordion feature of up to an additional US$ 250 million, which, if exercised, will increase the Partnership's total available borrowing capacity to US$ 1.05 billion. This facility represents an increase of US$ 250 million in total potential borrowing capacity over the Partnership's previous revolving credit facility, which had approximately US$ 100 million outstanding as of 30 June, 2014.

The amended facility reduces borrowing costs and commitment fees for the Partnership and incorporates positive adjustments to the pricing grid, which will continue to be based on the ratio of the Partnership's Consolidated Funded Debt to Consolidated EBITDA (Consolidated Funded Debt Ratio). 

Additional improvements to the covenant package, including an increase in the maximum permitted Consolidated Funded Debt Ratio to 5.25x, will enhance the Partnership's ability to finance its organic growth opportunities. Atlas Pipeline is also welcoming four new financial institutions to the facility - Royal Bank of Canada, Barclays Bank plc, The Royal Bank of Scotland plc, and PNC Bank, National Association. The addition of these participants brings the total number of banks in the facility to 22 institutions. Wells Fargo acted as sole lead arranger and continues to serve as the administrative agent for the facility. Paul Hastings LLP acted as legal counsel to the Partnership.

"We are very pleased to announce an amended credit facility with initial borrowing capacity of US$ 800 million, which will also provide a lower cost of capital and increased flexibility to the Partnership as we continue to strategically grow our core gathering and processing operations," stated Trey Karlovich, Chief Financial Officer of the Partnership. "We very much appreciate the support from our existing lender group and are excited to partner with four new financial institutions on this transaction."

Adapted from press release by Hannah Priestley-Eaton

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