Summary
ONEOK, Inc. (OKE) filed an 8-K on August 21, 2015, to report on a significant debt offering and its use of proceeds. On August 18, 2015, the company entered into an underwriting agreement for the issuance and sale of $500 million in aggregate principal amount of 7.50% notes due 2023. This offering was completed on August 21, 2015. The net proceeds from this offering, estimated at approximately $487.1 million after expenses, are earmarked for a strategic transaction involving its subsidiary, ONEOK Partners, L.P. Specifically, ONEOK intends to use these funds, along with available cash, to purchase additional common units of ONEOK Partners for $650 million. ONEOK Partners, in turn, plans to use the proceeds from its unit sales (including to ONEOK and Kayne Anderson) and its general partnership interest contribution to repay outstanding commercial paper and for general partnership purposes.
Key Highlights
- 1ONEOK, Inc. successfully completed a public offering of $500 million aggregate principal amount of 7.50% notes due 2023 on August 21, 2015.
- 2The net proceeds from the note offering are approximately $487.1 million after deducting underwriting discounts and estimated expenses.
- 3The company plans to use the proceeds to fund the acquisition of additional common units of its subsidiary, ONEOK Partners, L.P., for $650 million.
- 4This transaction represents a significant capital raise and a strategic move related to its master limited partnership, ONEOK Partners.
- 5The offering was conducted under a Registration Statement on Form S-3.
- 6The notes are governed by an indenture dated January 26, 2012, as supplemented by a Second Supplemental Indenture dated August 21, 2015.