ONEOK Raises $7 Billion in Senior Notes Offering

By Bobby Samwell • Monday, September 16 08:13 • Permanent Link

Oneok, Inc. (NYSE: OKE) has announced the pricing of an offering to sell $7.0 billion of senior notes, with the net proceeds expected to be approximately $6.92 billion. The offering consists 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%, and $800 million of 40-year senior notes at a coupon of 5.85%.

The company intends to use the net proceeds from the offering to fund the purchase price for its previously announced transactions to acquire Global Infrastructure Partners' (GIP) interest in Enlink Midstream, LLC and GIP's interest in Medallion Midstream, LLC, and to pay fees and expenses related to the respective transactions. It also intends to use any remaining net proceeds for general corporate purposes, including the repayment of outstanding indebtedness and the repurchase or redemption of existing notes.

The offering is expected to close on or about September 24, 2024, subject to the satisfaction of customary closing conditions. The 3-year notes, 5-year notes, and 7-year notes will be subject to a "special mandatory redemption" under certain conditions.

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, with several other firms acting as co-managers.

Oneok, Inc. is a leading midstream operator that provides gathering, processing, fractionation, transportation, and storage services through its more than 50,000-mile pipeline network. As an S&P 500 company headquartered in Tulsa, Oklahoma, Oneok plays a significant role in delivering energy products and services vital to an advancing world. As a result of these announcements, the company's shares have moved 1.0% on the market, and are now trading at a price of $91.37. Check out the company's full 8-K submission here.

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