Summary
ONEOK, Inc. (OKE) has filed an 8-K report detailing a significant debt offering to finance its previously announced acquisition of Magellan Midstream Partners, L.P. The company is issuing a total of $5.25 billion in notes across various maturities, ranging from 2026 to 2053, with coupon rates between 5.550% and 6.625%. These notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership. The primary purpose of this substantial debt issuance is to fund the cash consideration and other related costs associated with the Magellan acquisition. The offering is expected to close on August 24, 2023. This move signals ONEOK's commitment to proceeding with the transformative merger, which is anticipated to reshape its midstream operations and market position.
Key Highlights
- 1ONEOK is raising $5.25 billion through the issuance of senior notes with maturities ranging from 2026 to 2053.
- 2The proceeds from this offering are earmarked to fund the cash component of the Magellan Midstream Partners, L.P. acquisition.
- 3The issuance includes notes with coupon rates from 5.550% (2026 maturity) to 6.625% (2053 maturity).
- 4The notes are guaranteed by ONEOK Partners, L.P. and ONEOK Partners Intermediate Limited Partnership.
- 5The underwriting agreement includes standard representations, warranties, conditions to closing, and indemnification obligations.
- 6The offering is expected to close on August 24, 2023.
- 7A related news release from August 10, 2023, announcing the pricing of these notes, is also filed as part of this report.