Summary
ONEOK, Inc. (OKE) filed an 8-K on February 4, 2014, detailing two significant corporate actions. Firstly, the company announced the successful completion of the distribution of its wholly owned subsidiary, ONE Gas, Inc. (ONE Gas), to ONEOK shareholders on January 31, 2014. ONE Gas is now an independent, publicly traded entity (ticker: OGS) focused on regulated natural gas distribution. This separation involved ONEOK transferring its natural gas distribution assets and liabilities to ONE Gas, which in turn made a substantial cash payment of approximately $1.13 billion to ONEOK, derived from debt issuance. Secondly, ONEOK announced its election to call for the redemption of its $400 million aggregate principal amount of 5.2 percent notes due 2015, with the redemption date set for March 5, 2014. This action will result in the full retirement of these specific notes. Investors should note that the company also provided pro forma financial statements, offering a look at its financial position as if the separation had occurred at an earlier date.
Key Highlights
- 1ONEOK completed the spin-off of its natural gas distribution subsidiary, ONE Gas, Inc., on January 31, 2014.
- 2ONE Gas is now an independent, publicly traded company under the ticker OGS.
- 3ONEOK received approximately $1.13 billion in cash from ONE Gas as part of the separation, funded by ONE Gas's debt issuance.
- 4ONEOK announced the redemption of its entire $400 million principal amount of 5.2% notes due 2015.
- 5The redemption of the notes is scheduled for March 5, 2014, with all outstanding notes to be called.
- 6The filing includes pro forma financial statements as of September 30, 2013, and for prior periods, reflecting the impact of the separation.