Summary
ONEOK Inc. (OKE) has announced a tender offer and consent solicitation for its outstanding 8.44% Senior Notes due January 31, 2004, and its 8.32% Senior Notes due July 31, 2007. The company aims to repurchase all outstanding notes and simultaneously seek consent to amend the associated indenture agreements, effectively removing most restrictive covenants. This move suggests ONEOK is seeking greater financial flexibility and potentially refinancing its debt at more favorable terms, given the elevated interest rates on these notes. The tender offer prices the 8.44% Notes at $1,058.75 per $1,000 principal and the 8.32% Notes at $1,022.00 per $1,000 principal, excluding accrued interest. Additionally, holders who provide consent for the covenant amendments will receive a 3% consent fee ($30.00 per $1,000 principal). If both tender and consent are successful, the combined offer would effectively yield $1,088.75 for the 8.44% Notes and $1,052.00 for the 8.32% Notes. These offers expire on August 20, 2002, unless extended.
Key Highlights
- 1ONEOK is launching a tender offer to repurchase all of its outstanding 8.44% Senior Notes ($40M principal) and 8.32% Senior Notes ($24M principal).
- 2Simultaneously, the company is soliciting consents to eliminate most restrictive covenants in the notes' agreements.
- 3The tender offer price for the 8.44% Notes is $1,058.75 per $1,000 principal (excluding accrued interest).
- 4The tender offer price for the 8.32% Notes is $1,022.00 per $1,000 principal (excluding accrued interest).
- 5A 3% consent fee ($30.00 per $1,000 principal) will be paid to holders who consent to the covenant amendments, regardless of whether they tender their notes.
- 6The combined offer, if both tender and consent are successful, effectively offers $1,088.75 per $1,000 principal for 8.44% Notes and $1,052.00 per $1,000 principal for 8.32% Notes.
- 7The tender offer and consent solicitation expire on August 20, 2002, unless extended.