8-KMaterial AgreementsFinancial EventsRegulation FD+1

ONEOK INC /NEW/ 8-K Report, Material Agreement (Nov 21, 2018)

Filed November 21, 2018For Securities:OKE

Summary

ONEOK, Inc. (OKE) announced on November 20, 2018, the execution of a new three-year, $1.5 billion unsecured term loan facility, dated November 19, 2018. This facility provides significant liquidity for general corporate purposes, including working capital, capital expenditures, and debt repayment. The company has the flexibility to draw down these funds within a 180-day period after the closing date. The new term loan agreement includes covenants similar to the company's existing revolving credit facility, ensuring a consistent framework for financial management. The obligations under this new facility are unsecured and guaranteed by ONEOK's wholly owned subsidiaries, maintaining a similar structure to existing debt arrangements. This move enhances ONEOK's financial flexibility and provides additional resources to support its ongoing operational and growth initiatives.

Key Highlights

  • 1ONEOK entered into a new $1.5 billion unsecured term loan facility maturing on November 19, 2021.
  • 2The facility has a three-year term and is unsecured, providing financial flexibility.
  • 3Funds can be used for working capital, repayment of outstanding indebtedness, capital expenditures, and general corporate purposes.
  • 4ONEOK has the option to draw funds within a 180-day period following the closing date.
  • 5The term loan agreement includes covenants substantially similar to the company's existing revolving credit facility.
  • 6The facility is guaranteed by ONEOK's wholly owned subsidiaries, ONEOK Partners Intermediate Limited Partnership and ONEOK Partners, L.P.
  • 7The company has the option to extend the maturity date by one year, up to two times, subject to lender consent.

Frequently Asked Questions

The primary purpose of the new $1.5 billion term loan facility is to provide ONEOK with enhanced liquidity for various corporate needs, including working capital, repayment of outstanding indebtedness, capital expenditures, and other general corporate purposes.

The new term loan facility is unsecured. ONEOK's obligations under the agreement are guaranteed by its wholly owned subsidiaries, ONEOK Partners Intermediate Limited Partnership and ONEOK Partners, L.P.

The term loan is for $1.5 billion, has a three-year maturity (November 19, 2021), and allows ONEOK to choose between a fluctuating base rate or a fixed LIBOR-based rate for interest calculation. It also contains covenants similar to ONEOK's existing revolving credit facility, and offers options for maturity date extensions.

ONEOK can draw upon the Term Loan Facility during the 180-day period after the Closing Date (November 19, 2018). The number of permissible borrowings depends on whether an initial borrowing is made before or after December 31, 2018.