A Houston-based energy trading firm has purchased Williams’ domestic petroleum trading and marketing business for $23 million and the assumption of future obligations that total $16.5 million.

Saracen Energy Partners LP said the assets, which were included in Williams’ power segment, included transportation contracts, forward purchase and sale contracts and inventory. The assets are principally associated with a refined products marketing business concentrated in the Midwest.

Tulsa-based Williams will provide some transition services and will operate the business of behalf of Saracen until final closing on July 1, or until all necessary assignments and governmental regulations are met. As part of the transaction, Saracen plans to hire the senior commercial oil team from Williams.

“We are excited about the specific opportunities related to these assets and expanding our Midwest marketing presence as well as the prospect of using this acquisition to ultimately launch a broader multi-commodity platform in the physical and financial energy markets in North America,” said Saracen CEO Neil Kelley.

In other news, Williams has obtained a new five-year, $400 million unsecured credit facility from Citigroup, which it plans to use for issuing letters of credit. The new facility will be used by Williams as an alternative to its existing line of credit that requires cash collateralization, freeing up approximately $400 million. Williams plans to apply the funds that were previously used for cash collateralization for general corporate purposes, including future debt repayments.

“The successful completion of the new credit facility is the first of two steps in the company’s planned replacement of its credit facilities,” said Williams CFO Don Chappel. “These actions are designed to unlock additional cash that can be used to retire a portion of our long-term debt ahead of schedule.”

Williams also is exploring replacement of its current $800 million cash-collateralized revolver with a more traditional secured revolving credit facility.

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