Summary
ONEOK, Inc. (OKE) filed an 8-K report on March 13, 2019, detailing a significant debt financing transaction. The company successfully priced an underwritten public offering of $700 million in 4.35% notes due 2029 and $550 million in 5.20% notes due 2048, for a total of $1.25 billion in new debt. These notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership. The proceeds from this offering are earmarked for general corporate purposes, which may include repaying existing debt and funding capital expenditures, indicating a strategic move to manage its capital structure and support future growth initiatives. This offering represents an expansion of ONEOK's existing debt, with the 2048 notes being fungible and consolidated with the previously issued 2048 notes from July 2018. The underwriters include prominent financial institutions such as Barclays Capital Inc., Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., and TD Securities (USA) LLC. The filing also includes various supplemental indentures and legal opinions related to these new debt issuances.
Key Highlights
- 1ONEOK priced an underwritten public offering of $1.25 billion in aggregate principal amount of notes.
- 2The offering consists of $700 million of 4.35% notes due 2029 and $550 million of 5.20% notes due 2048.
- 3The new notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership.
- 4The net proceeds from the offering are approximately $1.23 billion and will be used for general corporate purposes, potentially including debt repayment and capital expenditures.
- 5The 2048 notes are fungible with and consolidated with the existing 5.20% notes due 2048 issued in July 2018.
- 6Key underwriters for the offering include Barclays Capital Inc., Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., and TD Securities (USA) LLC.