In a Securities Exchange Commission filing, ONEOK Inc. cited the COVID-19 pandemic as the cause for its public offering of 26 million shares of common stock at a price to the public of $32 a share.
“We anticipate using the net proceeds from this offering for general corporate purposes, which may include the repayment of our existing indebtedness and the funding of capital expenditures,” stated the company in the government filing.
“We estimate the net proceeds from this offering, after deducting underwriting discounts and our estimated offering expenses, will be approximately $815 million, or approximately $937 million if the underwriters exercise their option to purchase additional shares of our common stock in full.”
ONEOK said the global and regional economic disruption caused by the COVID-19 pandemic led to a “volatile commodity price environment and, in some cases, a curtailment of crude production” by its customers, resulting in reduced volumes during the quarter ending June 30, 2020.
“While we are monitoring the situation, given the current industry and economic environment, at this time it remains impractical for us to provide any additional financial or volume guidance for the quarter ending June 30, 2020, full year ending December 31, 2020 or beyond due to the number of potential variations of outcomes for price forecasts, curtailment quantities as well as the duration, pace and scale of economic recovery on a worldwide basis in the aftermath of this pandemic, among other factors.”
In May of this year, the company issued $600 million of 5.850% notes due 2026, $600 million of 6.350% notes due 2031 and $300 million of 7.150% notes due 2051.
ONEOK already used the proceeds from those notes to repay all outstanding borrowings under its term loan facility and for general corporate purposes. The company said the general corporate purposes could include the repayment of other existing indebtedness and the funding of capital expenditures.
Click here to view SEC filing.
