Summary
This 8-K filing from ONEOK, Inc. (OKE) on January 20, 2003, reports a significant development approved by the Kansas Corporation Commission (KCC) on January 17, 2003. The KCC approved an agreement between ONEOK and Westar Energy, Inc. (and its subsidiary Westar Industries, Inc.) concerning ONEOK's Series A Convertible Preferred Stock held by Westar Industries. This agreement allows ONEOK to repurchase up to $250 million of these shares, with the repurchase price based on the prevailing common stock market price less certain costs. Furthermore, the remaining Series A Convertible Preferred Stock not repurchased will be exchanged for new shares of ONEOK's Series D Convertible Preferred Stock. This transaction aims to restructure ONEOK's preferred stock obligations held by Westar Industries. The KCC's order becomes final on February 4, 2003, provided no appeals are filed, marking a crucial step in the financial restructuring and potentially impacting ONEOK's capital structure and outstanding equity.
Key Highlights
- 1ONEOK, Inc. reached an agreement with Westar Energy, Inc. and Westar Industries, Inc. approved by the Kansas Corporation Commission (KCC).
- 2The agreement allows ONEOK to repurchase up to $250 million of its Series A Convertible Preferred Stock held by Westar Industries.
- 3The repurchase price will be based on the prevailing market price of ONEOK's common stock, adjusted by certain costs.
- 4Any remaining Series A Convertible Preferred Stock not repurchased will be exchanged for new shares of ONEOK's Series D Convertible Preferred Stock.
- 5The KCC's order approving the agreement is set to become final on February 4, 2003, unless an appeal is filed.
- 6This action signifies a potential restructuring of ONEOK's preferred stock obligations and its capital base.