8-KOther Events

ONEOK INC /NEW/ 8-K Report (Aug 23, 2002)

Filed August 23, 2002For Securities:OKE

Summary

ONEOK Inc. announced on August 21, 2002, the successful completion of its previously announced 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 reported that holders of all outstanding notes participated in the tender offer and delivered the necessary consents. This action signals a proactive step by ONEOK to manage its debt obligations.

Key Highlights

  • 1ONEOK has successfully completed a tender offer and consent solicitation for its 8.44% Senior Notes and 8.32% Senior Notes.
  • 2All outstanding principal amounts of both the 8.44% and 8.32% Senior Notes were tendered and consents were received.
  • 3The settlement for these transactions is expected on August 23, 2002.
  • 4Holders of 8.44% Notes will receive $1,090.70 per $1,000 principal, including a $30 consent fee.
  • 5Holders of 8.32% Notes will receive $1,052 per $1,000 principal, including a $30 consent fee.
  • 6This move indicates ONEOK's initiative in managing its debt structure and potentially reducing interest expenses or refinancing at more favorable terms.

Frequently Asked Questions

The primary purpose was for ONEOK to manage its outstanding debt by offering to repurchase its 8.44% Senior Notes and 8.32% Senior Notes, and to gain consent from noteholders for potential changes or early retirement.

Holders of 8.44% Senior Notes received a total of $1,090.70 per $1,000 principal amount, which includes $1,060.70 for the tendered note and a $30 consent fee. Holders of 8.32% Senior Notes received $1,052 per $1,000 principal amount, also including a $30 consent fee.

The settlement of the tender offer and consent solicitation is expected to take place on August 23, 2002.

This announcement does not necessarily imply financial distress. Companies often engage in tender offers and consent solicitations to optimize their capital structure, reduce interest costs, or refinance debt, especially if market conditions are favorable or if they anticipate changes in their financing needs.