Tulsa’s ONEOK Inc. has filed a prospectus to sell a series of notes. The company filed the preliminary prospectus on Monday with the Securities and Exchange Commission indicating it plans to sell notes due in 2024, 2029 and 2049.
But the amount of notes due has yet to be determined by the company. The company has also not announced the official date on which it will begin offering the notes.
Typical with the filing of a prospectus, many specifics were not included such as, “We estimate the net proceeds from this offering, after deducting underwriting discounts and the estimated expenses of this offering payable by us, will be approximately $ . We anticipate using the net proceeds from this offering (i) to redeem in full ONEOK Partners’ $300 million in aggregate principal amount of 3.80% Senior Notes due 2020 (the “2020 notes”) and (ii) for general corporate purposes, which may include the repayment of other existing indebtedness and the funding of capital expenditures.”
We are offering $ aggregate principal amount of our % notes due 2024 (the “2024 notes”), $ aggregate principal amount of our % notes due 2029 (the “2029 notes”) and $ aggregate principal amount of our % notes due 2049 (the “2049 notes”). In this prospectus supplement, the term “notes” collectively refers to the 2024 notes, the 2029 notes and the 2049 notes.
The 2024 notes will bear interest at the rate of % per year and will mature on , 2024. The 2029 notes will bear interest at the rate of % per year and will mature on , 2029. The 2049 notes will bear interest at a rate of % per year and will mature on , 2049. Interest on the notes is payable on and of each year, beginning on , 2020. Interest on the notes will accrue from , 2019. We may redeem the 2024 notes, the 2029 notes and the 2049 notes, in whole or in part, at any time at the redemption prices described under “Description of the Notes—Optional Redemption.”
The notes will be senior unsecured obligations of ours and will rank equally in right of payment with all of our existing and future unsecured senior debt.
The notes will be fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by certain of our subsidiaries. Each guarantee will rank equally in right of payment with all of such guarantor’s existing and future unsecured senior debt and other unsecured guarantees of senior debt. The notes and the guarantees will be effectively junior to any secured indebtedness of ours or any guarantor to the extent of the value of the assets securing such indebtedness and structurally subordinated to all indebtedness and other obligations of our subsidiaries that do not guarantee the notes.
Investing in the notes involves risks. See “ Risk Factors ” beginning on page S-7 of this prospectus supplement and on page 7 of the accompanying base prospectus.
|Offering Price to
|Proceeds to us
|Per 2024 note||%||%||%|
|Per 2029 note||%||%||%|
|Per 2049 note||%||%||%|
Plus accrued interest, if any, from , 2019, if settlement occurs after that date.
Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying base prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The notes will not be listed on any national securities exchange. Currently, there is no public market for the notes. We expect that the notes will be ready for delivery in registered book-entry form only through the facilities of The Depository Trust Company for the accounts of its participants, including Clearstream Banking S.A., and Euroclear Bank S.A./N.V., as operator of the Euroclear System, against payment in New York, New York, on or about , 2019.