Summary
ONEOK, Inc. (OKE) filed an 8-K on June 20, 2018, to report on the entry into a material definitive agreement concerning the issuance and sale of new debt. Specifically, ONEOK entered into an Underwriting Agreement on June 19, 2018, with several underwriters to issue $800 million in 4.55% notes due 2028 and $450 million in 5.20% notes due 2048, totaling $1.25 billion in aggregate principal amount. This debt issuance is a significant event for investors as it provides capital for the company, likely for general corporate purposes or to fund strategic initiatives. The terms of the notes, including their interest rates and maturity dates, offer insight into ONEOK's cost of capital and long-term financing strategy. The filing also includes the standard representations, warranties, conditions, and indemnification clauses typical of such underwriting agreements, and notes the pre-existing relationships between the underwriters and ONEOK's credit facilities.
Key Highlights
- 1ONEOK entered into an Underwriting Agreement on June 19, 2018, to issue new debt.
- 2The company will issue $800 million of 4.55% notes due 2028.
- 3The company will also issue $450 million of 5.20% notes due 2048.
- 4The total aggregate principal amount of the notes being issued is $1.25 billion.
- 5The Underwriting Agreement contains customary provisions regarding representations, warranties, conditions, and indemnification.
- 6Affiliates of the underwriters have provided and may continue to provide services and financing to ONEOK.
- 7The filing includes a press release announcing the pricing of these notes.