Williams Sells Assets, Obtains New Loans

Williams Cos., which had been driven to the brink of insolvency, raised $3.4 billion with asset sales and new loans that the pipeline company expects will ease a cash crunch.

Williams said it got $1.4 billion by selling two pipelines and some U.S. natural-gas reserves, and $900 million in secured loans from investors led by Lehman Bros. Inc. and Warren Buffett’s Berkshire Hathaway Inc. The company also got a $1.1-billion credit agreement.

The money will buy Williams time as it works to restructure businesses after the collapse of energy trading and falling power prices eroded earnings and investor confidence, analysts said. The Tulsa, Okla.-based company’s options dwindled after its credit rating was cut to “junk,” it posted a second-quarter loss of $349.1 million and it was forced to slash its dividend by 95%.

Williams shares rose 85 cents to close at $3.80 on the New York Stock Exchange.