Summary
ONEOK, Inc. (OKE) filed an 8-K on November 2, 2005, to disclose the proposed remarketing of its 4% senior notes due February 16, 2008. This event, dated November 1, 2005, involves UBS Securities LLC acting as the remarketing agent, with the goal of resetting the interest rate and remarketing the notes on November 10, 2005. The new interest rate will be determined based on the market conditions and aims to remarket the notes at approximately 100.5% of the purchase price of a specified U.S. Treasury securities portfolio. A successful remarketing will result in the proceeds being used to purchase U.S. Treasury securities, which will then serve as collateral for the equity purchase contracts associated with these notes. These contracts obligate holders to purchase OKE common stock on February 16, 2006. The company will continue to have $402.5 million of these senior notes outstanding post-remarketing. This action is a significant event for noteholders as it impacts the interest rate and the collateral structure supporting their future equity purchase obligations.
Key Highlights
- 1ONEOK announced the proposed remarketing of its 4% senior notes due February 16, 2008.
- 2The remarketing is scheduled to occur on November 10, 2005, with UBS Securities LLC as the remarketing agent.
- 3The primary objective is to reset the interest rate on the senior notes to reflect current market conditions.
- 4If successful, the notes will be remarketed at approximately 100.5% of the purchase price of a specific U.S. Treasury securities portfolio.
- 5Proceeds from the remarketing will be used to purchase U.S. Treasury securities to collateralize equity purchase contracts for OKE common stock.
- 6Holders of record as of November 9, 2005, are eligible for any excess remarketing proceeds.
- 7The total principal amount of senior notes outstanding ($402.5 million) will remain unchanged after the remarketing.