Summary
ONEOK, Inc. (OKE) filed an 8-K on November 17, 2022, to report on the issuance of new debt. Specifically, the company entered into an underwriting agreement on November 15, 2022, for the sale of $750 million aggregate principal amount of 6.100% notes due 2032. These notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership. The offering was completed on November 18, 2022. The primary purpose of this debt issuance is to repay outstanding amounts under ONEOK's commercial paper program, with any excess proceeds intended for other debt repayment or general corporate purposes. This move suggests a strategy to manage short-term liquidity and potentially refinance existing obligations with longer-term debt at a fixed interest rate.
Key Highlights
- 1ONEOK completed a public offering of $750 million in 6.100% notes due 2032.
- 2The new notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership.
- 3Proceeds of approximately $742 million (net of expenses) will be used primarily to repay outstanding commercial paper.
- 4Any remaining net proceeds may be used for further debt reduction or general corporate purposes.
- 5The debt issuance was facilitated through an underwriting agreement with several financial institutions, including Barclays Capital Inc., Mizuho Securities USA LLC, TD Securities (USA) LLC, and Wells Fargo Securities, LLC.
- 6The issuance involved a supplemental indenture and the form of the notes, both filed as exhibits to the 8-K.