Summary
ONEOK, Inc. (OKE) filed an 8-K on August 17, 2015, reporting on several significant financial transactions that occurred around August 11, 2015. The primary event detailed is ONEOK's agreement to purchase approximately $650 million worth of common units in its subsidiary, ONEOK Partners, L.P., through a private placement. This strategic move is aimed at increasing ONEOK's ownership stake in the partnership. Further bolstering the partnership's capital, ONEOK Partners also entered into a separate registered direct offering, raising an additional $100 million from funds managed by Kayne Anderson Capital Advisors, L.P. To maintain its general partner interest, ONEOK will contribute capital to its general partner entity. These transactions collectively increase ONEOK's and its general partner's aggregate ownership in ONEOK Partners, L.P. to 41.2%. Additionally, ONEOK announced its intention to issue $500 million in notes via a public offering, signaling a broader financing strategy.
Key Highlights
- 1ONEOK, Inc. entered into a private placement agreement to purchase approximately $650 million of ONEOK Partners, L.P. common units.
- 2The purchase involves 21,544,581 common units at a price of $30.17 per unit.
- 3ONEOK Partners, L.P. separately raised $100 million through a registered direct offering of common units to funds managed by Kayne Anderson Capital Advisors, L.P.
- 4These transactions will increase ONEOK's and its general partner's aggregate ownership in ONEOK Partners, L.P. to 41.2%.
- 5ONEOK announced plans for a $500 million underwritten public offering of notes.