Summary
ONEOK, Inc. (OKE) filed an 8-K on March 10, 2020, detailing significant financing activities. The company successfully completed underwritten public offerings of $1.75 billion in aggregate principal amount of notes across three different maturities: 2.200% notes due 2025, 3.100% notes due 2030, and 4.500% notes due 2050. These offerings were guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership.
Key Highlights
- 1ONEOK completed public offerings of $1.75 billion in notes, comprised of $400 million of 2.200% notes due 2025, $850 million of 3.100% notes due 2030, and $400 million of 4.500% notes due 2050 (initial tranche) plus an additional $100 million of 4.500% notes due 2050.
- 2The proceeds from these offerings, totaling approximately $1.73 billion after expenses, are earmarked primarily to repay all outstanding amounts under ONEOK's commercial paper program and for general corporate purposes.
- 3General corporate purposes may include the repayment of other existing indebtedness and funding of capital expenditures, indicating a strategic focus on deleveraging and operational investment.
- 4The issuance of these notes was facilitated by underwriting agreements with a syndicate of reputable financial institutions, including Barclays Capital Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, and TD Securities (USA) LLC.
- 5The notes and related guarantees are governed by the existing Indenture dated January 26, 2012, as supplemented by three new supplemental indentures executed on March 10, 2020, corresponding to each note maturity.
- 6The filing incorporates by reference several exhibits, including the underwriting agreements, supplemental indentures, forms of the notes, and legal opinions, providing detailed terms and conditions of the debt issuance.
Frequently Asked Questions
The primary purpose of this $1.75 billion debt issuance is to repay all outstanding amounts under ONEOK's commercial paper program and for general corporate purposes. This includes potential repayment of other existing debt and funding for capital expenditures, indicating a proactive approach to managing its capital structure and funding operations.
By repaying commercial paper and potentially other existing indebtedness, this issuance aims to strengthen ONEOK's balance sheet and manage its leverage. The use of proceeds suggests a focus on deleveraging and ensuring stable funding for ongoing business needs.
ONEOK issued notes with three different maturities: $400 million of 2.200% notes due 2025, $850 million of 3.100% notes due 2030, and a total of $500 million of 4.500% notes due 2050 (split into an initial $400 million and an additional $100 million).
The underwriters for this offering include Barclays Capital Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, and TD Securities (USA) LLC, acting as representatives for the syndicate.