Summary
ONEOK, Inc. has successfully completed a significant public offering of $6.25 billion in aggregate principal amount of notes across various maturities, ranging from 2027 to 2064, with coupon rates from 4.250% to 5.850%. The primary purpose of this substantial debt issuance is to fund the acquisition of Global Infrastructure Partners' (GIP) interests in EnLink Midstream, LLC and Medallion Midstream, LLC. The net proceeds, approximately $6.9 billion, will directly facilitate these strategic transactions, with any remaining funds allocated for general corporate purposes, including potential debt repayment. This offering also led to the termination of a $6.0 billion unsecured term loan facility with JPMorgan Chase Bank, N.A. and Goldman Sachs Bank USA, as ONEOK determined it was no longer necessary for financing the acquisitions. The notes are guaranteed by ONEOK Partners, L.P., ONEOK Partners Intermediate Limited Partnership, and Magellan Midstream Partners, L.P. Notably, the 2027, 2029, and 2031 notes are subject to a special mandatory redemption if the EnLink transaction does not close by a specified outside date or if the purchase agreement is terminated, providing a degree of protection to investors in these tranches.
Key Highlights
- 1ONEOK completed a $6.25 billion public offering of notes with maturities spanning from 2027 to 2064.
- 2Proceeds will primarily fund the acquisition of GIP's interests in EnLink Midstream and Medallion Midstream.
- 3The offering raised approximately $6.9 billion in net proceeds.
- 4A $6.0 billion unsecured term loan facility was terminated as it is no longer needed for transaction financing.
- 5The new notes are guaranteed by ONEOK Partners, L.P., ONEOK Partners Intermediate Limited Partnership, and Magellan Midstream Partners, L.P.
- 6Certain notes (2027, 2029, 2031) have a special mandatory redemption provision if the EnLink acquisition does not close by the specified outside date.
- 7The issuance reflects ONEOK's strategy to finance significant growth opportunities through capital markets.