8-KMaterial Agreements

ONEOK INC /NEW/ 8-K Report, Agreement Terminated (Jun 28, 2017)

Filed June 28, 2017For Securities:OKE

Summary

ONEOK, Inc. (OKE) announced the termination of its Amended and Restated Credit Agreement, effective January 31, 2014. This termination is contingent on the successful closing of the merger between ONEOK Partners, L.P. and a wholly owned subsidiary of ONEOK, where ONEOK Partners will continue as the surviving entity. The termination is also subject to the satisfaction of closing conditions for a new $2.5 billion revolving unsecured credit facility, referred to as the 2017 Credit Agreement. Similarly, ONEOK Partners, L.P. has also delivered a notice of termination for its own Amended and Restated Credit Agreement, subject to the same merger closing and new credit facility conditions. Notably, many lenders and letter of credit issuers involved in the terminated agreements are also participants in the new 2017 Credit Agreement, suggesting a smooth transition and a consolidation of credit facilities.

Key Highlights

  • 1ONEOK, Inc. is terminating its existing credit agreement.
  • 2ONEOK Partners, L.P. is also terminating its existing credit agreement.
  • 3Both terminations are contingent on the closing of the ONEOK Partners merger.
  • 4A new $2.5 billion revolving unsecured credit facility (2017 Credit Agreement) will become effective upon merger closing.
  • 5Many lenders from old agreements are participating in the new credit facility.
  • 6This suggests a refinancing and consolidation of debt facilities.

Frequently Asked Questions

The termination of both ONEOK, Inc.'s and ONEOK Partners, L.P.'s credit agreements is primarily to facilitate the closing of the merger between ONEOK Partners and a subsidiary of ONEOK, and to transition to a new, larger credit facility.

The new credit facility is the '2017 Credit Agreement', which is a revolving unsecured credit facility with a total capacity of $2.5 billion. It is set to become effective upon the closing of the merger.

No, the termination appears to be a planned event related to a corporate restructuring (the merger) and a refinancing strategy. The establishment of a new, substantial credit facility suggests continued access to capital and a strengthening of the company's financial flexibility.

The filing suggests a relatively smooth transition, as many of the lenders and letter of credit issuers from the old agreements are also involved in the new 2017 Credit Agreement. This indicates continuity for lenders and likely more favorable terms or scale with the new facility.