(Reuters) - Canada's Inter Pipeline Ltd (TO:IPL) said on Friday it entered into a C$1 billion ($708.77 million) unsecured revolving credit facility as global crude prices plunged because of excess supplies and demand tumbled due to the coronavirus crisis.
The new agreement has an initial term of 16-months and is substantially similar to its existing C$1.5 billion revolving credit facility that matures in December 2024, the pipeline operator said.
The coronavirus pandemic has put a strain on Canada's pipeline operators as oil producers scale back output to deal with a supply glut and rout in crude prices as fuel demand falls.
The company has also extended the maturity date of its drawn C$500 million term loan facility by two-years to August 2022.
"Inter Pipeline now has $2.2 billion of available capacity on its existing revolving credit facilities and is well positioned to refinance any near-term debt obligations in the event of a prolonged capital market disruption," Chief Financial Officer Brent Heagy said in a statement.