Summary
ONEOK, Inc. (OKE) has filed an 8-K report detailing a significant debt offering completed on May 7, 2020. The company successfully issued $1.5 billion in aggregate principal amount of senior notes across three tranches: $600 million of 5.850% notes due 2026, $600 million of 6.350% notes due 2031, and $300 million of 7.150% notes due 2051. These notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership. The net proceeds from this offering, approximately $1.48 billion after expenses, are earmarked for repaying outstanding borrowings under ONEOK's term loan facility and for general corporate purposes, which may include further debt reduction and capital expenditures. This strategic financing move aims to bolster ONEOK's liquidity and manage its existing debt structure.
Key Highlights
- 1ONEOK raised $1.5 billion through a public offering of senior notes.
- 2The offering included notes maturing in 2026 ($600M), 2031 ($600M), and 2051 ($300M) with coupon rates of 5.850%, 6.350%, and 7.150%, respectively.
- 3Proceeds will be used to repay outstanding borrowings under its term loan facility.
- 4Remaining proceeds are allocated for general corporate purposes, potentially including other debt repayment and capital expenditures.
- 5The notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership.
- 6The company registered the sale of these notes under a Form S-3 registration statement previously filed.
- 7The transaction was completed on May 7, 2020.