Summary
ONEOK Inc. (OKE) has filed an 8-K report detailing a significant debt issuance and its intended use of proceeds. On September 10, 2024, the company entered into an underwriting agreement to issue a substantial aggregate principal amount of notes across various maturities, totaling $6.75 billion. These notes range from 3-year to 40-year terms with coupon rates from 4.250% to 5.850%. The primary purpose of this offering is to finance ONEOK's previously announced acquisitions of full interests in EnLink Midstream, LLC and Medallion Midstream, LLC from affiliates of Global Infrastructure Partners (GIP). Any remaining proceeds will be allocated to general corporate purposes, which may include debt repayment or redemption of existing notes. This strategic move signals ONEOK's intent to expand its midstream footprint and finance these growth initiatives through the capital markets.
Key Highlights
- 1ONEOK Inc. priced a $6.75 billion aggregate principal amount debt offering consisting of six tranches of notes with maturities ranging from 2027 to 2064.
- 2The offering includes notes with coupon rates varying from 4.250% for the 2027 notes to 5.850% for the 2064 notes.
- 3Proceeds are earmarked to fund the acquisition of Global Infrastructure Partners' (GIP) interests in EnLink Midstream, LLC and Medallion Midstream, LLC.
- 4The acquisitions are a key strategic initiative to expand ONEOK's midstream assets.
- 5The offering is expected to close on September 24, 2024, subject to customary closing conditions.
- 6Guarantees for the notes are provided by ONEOK Partners, L.P., ONEOK Partners Intermediate Limited Partnership, and Magellan Midstream Partners, L.P.
- 7The underwriting agreement contains standard representations, warranties, conditions to closing, and indemnification provisions.