Kerr-McGee Closes $1.25 Billion Unsecured Credit Facility

Kerr-McGee Corp. reports the closing of a $1.25 billion unsecured revolving credit facility. The five-year facility, which will be used for ongoing working capital needs and general corporate purposes, will have an initial margin above London Inter Bank Offering Rates (LIBOR) of 125 basis points. Concurrent with the closing of the new unsecured credit facility, Kerr-McGee terminated its existing $5.5 billion secured credit facility, which consisted of a $1.25 billion five-year revolving credit line and $4.25 billion of term loans that had previously been repaid. Upon the termination of the $5.5 billion secured facility and the release of the associated collateral, Kerr-McGee's $2.6 billion of public bonds also became unsecured.