By Ronda Fears
Nashville, Jan. 23 - Oneok Inc. sold an upsized $350 million of three-year mandatories at par of 25 to yield 8.5% with a 20% initial conversion premium - at the middle of price talk. The deal was upped from $275 million and came at the middle of talk which put the yield at 8.25-8.75% and the conversion premium at 18-22%.
Banc of America, JPMorgan and UBS Warburg were joint bookrunners for the offering, along with the sale of 12 million common shares at $17.19 apiece.
Proceeds are earmarked to repurchase up to $250 million of Oneok's series A convertible preferred stock from Westar Energy Inc., which was issued in 1997 when Oneok bought Westar's natural gas assets, and to repay short-term debt.
Final terms of the Oneok deal are:
| Issuer: | Oneok Inc.
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| Amount: | $350 million, up from $275 million
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| Bookrunners: | Banc of America, JPMorgan and UBS Warburg
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| Maturity date: | Feb. 16, 2018
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| Dividend: | 8.5%
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| Issue price: | Par, $25
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| Conversion premium: | 20%
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| Conversion price: | $17.19/$20.628
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| Conversion ratio | : | 1.212/1.454
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| Call: | Non-callable
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| Expected ratings: | Moody's: Baa1
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| S&P: A
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| Settlement date: | Jan. 28
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