Kinder Morgan Inc. (KMI) has closed on a three-year, unsecured $1 billion term loan and a $1 billion expansion of its unsecured revolving credit facility, increasing the facility’s capacity to $5 billion. Proceeds from the term loan are to be used for general corporate purposes, including debt repayment. Pricing for both facilities is consistent with KMI's existing revolving credit facility and includes a floating interest rate calculated based on the company's credit rating that currently equals the London Interbank Offered Rate (LIBOR) plus 150 basis points. The term loan contains the same covenant package as the existing revolving credit facility. The move provides incremental liquidity and refinances 2016 long-term debt maturities. "We see no need to access the capital markets in 2016," said CFO Kim Dang. "Combined with continued high-grading of our backlog of growth projects, this insulates us well in the face of sustained unfavorable financial markets." KMI has reduced its planned 2016 spending and recently cut its dividend (see Daily GPI, Jan. 21; Dec. 9, 2015).