Summary
ONEOK, Inc. (OKE) filed an 8-K report on January 26, 2012, detailing a significant debt offering. The company entered into an underwriting agreement on January 23, 2012, for the issuance and sale of $700 million in aggregate principal amount of 4.25% notes due 2022. This offering, which was completed on January 26, 2012, generated net proceeds of approximately $694 million after deducting underwriting discounts and expenses. The net proceeds are earmarked for repaying outstanding amounts under ONEOK's $1.2 billion commercial paper program and for general corporate purposes. These general purposes may include common stock repurchases, investments in ONEOK Partners, L.P. common units, and dividend payments. The filing also includes details on the Indenture and Supplemental Indenture governing the notes, as well as opinions from legal counsel.
Key Highlights
- 1ONEOK Inc. completed a $700 million public offering of 4.25% senior notes due 2022.
- 2The offering closed on January 26, 2012.
- 3Net proceeds from the offering are approximately $694 million.
- 4Proceeds will be used to reduce outstanding commercial paper debt and for general corporate purposes.
- 5General corporate purposes may include stock buybacks, investment in ONEOK Partners, and dividend payments.
- 6The underwriting agreement was with J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Securities, LLC.