Summary
ONEOK Inc.'s subsidiary, ONEOK Partners, L.P., has established a new $1 billion commercial paper program to enhance its funding flexibility. This program, effective June 16, 2010, allows the Partnership to issue unsecured commercial paper notes with maturities of up to 270 days. The proceeds are intended for general partnership purposes and can be reborrowed, providing a dynamic source of short-term financing. This initiative serves as an alternative funding source and does not represent an increase in the Partnership's overall debt, as it can be repaid using its existing revolving credit facility, which matures in March 2012. The program's establishment indicates a proactive approach by ONEOK Partners to manage its liquidity and operational financing needs efficiently, offering investors insights into the company's ongoing financial management strategies.
Key Highlights
- 1ONEOK Partners, L.P. launched a new $1 billion unsecured commercial paper program.
- 2The program allows for the issuance of notes with maturities up to 270 days.
- 3Proceeds from the program will be used for general partnership purposes.
- 4The program offers reborrowing capabilities for ongoing funding needs.
- 5This commercial paper program acts as an alternative funding source and does not increase overall debt.
- 6The Partnership's revolving credit agreement, expiring March 2012, can be used to repay commercial paper notes if necessary.
- 7Citigroup Global Markets Inc., Banc of America Securities LLC, and SunTrust Robinson Humphrey, Inc. are acting as dealers for the program.