ONEOK, Inc. announced that it has priced an offering to sell $7.0 billion of senior notes, consisting of:
- $1.25 billion of 3-year senior notes at a coupon of 4.25%.
- $600 million of 5-year senior notes at a coupon of 4.40%.
- $1.25 billion of 7-year senior notes at a coupon of 4.75%.
- $1.60 billion of 10-year senior notes at a coupon of 5.05%.
- $1.50 billion of 30-year senior notes at a coupon of 5.70%.
- $800 million of 40-year senior notes at a coupon of 5.85%.
The net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, are expected to be approximately $6.92 billion. ONEOK intends to use the net proceeds from the offering to fund the purchase price for its previously announced transactions to acquire Global Infrastructure Partners’ interest in EnLink Midstream, LLC and GIP’s interest in Medallion Midstream, LLC and to pay fees and expenses related to the respective transactions.
ONEOK intends to use any remaining net proceeds from the offering for general corporate purposes, which may include the repayment of outstanding indebtedness, including the repurchase or redemption of existing notes. ONEOK expects the offering to close on or about Sept. 24, 2024, subject to the satisfaction of customary closing conditions.
The 3-year notes, the 5-year notes and the 7-year notes will be subject to a “special mandatory redemption” if the EnLink Transaction is not completed on or before the EnLink Outside Date (as described in the prospectus supplement); prior to the EnLink Outside Date, the EnLink Purchase Agreement is terminated; or ONEOK otherwise notifies the trustee in writing that it will not pursue the consummation of the EnLink Transaction.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC and Siebert Williams Shank & Co., LLC are acting as joint book-running managers for the offering.
CIBC World Markets Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., BOK Financial Securities, Inc., Loop Capital Markets LLC and R. Seelaus & Co., LLC are acting as co-managers for the offering.
Source: PR Newswire