ONEOK signs off on the sale of $1.25 billion in notes and plans to use the proceeds to pay for its recent acquisitions.
The Tulsa-based company announced Monday that on September 10, 2024, ONEOK, Inc., ONEOK Partners, L.P. , ONEOK Partners Intermediate Limited Partnership and Magellan Midstream Partners, L.P. entered into an underwriting agreement with J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., and Wells Fargo Securities, LLC.
The agreement involves the issuance and sale by ONEOK of $1.25 billion aggregate principal amount of its 4.250% notes due 2027 4.400% notes due 2029, $1.25 billion aggregate principal amount of its 4.750% notes due 2031 , $1.60 billion aggregate principal amount of its 5.050% notes due 2034 , $1.50 billion aggregate principal amount of its 5.700% notes due 2054 , and $800 million aggregate principal amount of its 5.850% notes due 2064 and, together with the 2027 Notes, the 2029 Notes, the 2031 Notes, the 2034 Notes and the 2054 Notes.
The Offering is expected to close on September 24, 2024, subject to customary closing conditions. As described in the prospectus supplement, dated September 10, 2024, ONEOK intends to use the net proceeds from the Offering to fund the purchase prices for its previously announced transactions with affiliates of
Global Infrastructure Partners to acquire GIP’s entire interests in EnLink Midstream, LLC and Medallion Midstream, LLC and to pay related fees and expenses.
ONEOK intends to use any remaining net proceeds for general corporate purposes, which may include the repayment of outstanding indebtedness, including the repurchase or redemption of existing notes.
