Published on 5/5/2020 in the Prospect News Investment Grade Daily.
New Issue: Oneok details $1.5 billion notes in three parts due 2025, 2030, 2050
By Devika Patel
Knoxville, Tenn., May 5 – Oneok Inc. offered further details about a $1.5 billion sale of senior notes (BBB) that priced in three parts, according to an FWP filed with the Securities and Exchange Commission.
The company priced $600 million of 5.85% five-year senior notes at 99.943 to yield 5.864%, or Treasuries plus 550 basis points.
Oneok sold $600 million of 6.35% 10-year senior notes at 99.667 to yield 6.395%, with a spread of Treasuries plus 575 bps.
Oneok also priced $300 million of 7.15% 30-year senior notes at 99.632 to yield 7.181%, with a spread of Treasuries plus 587.5 bps.
Citigroup Global Markets Inc., BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunners.
Proceeds will be used to repay debt under the company’s term loan facility and for general corporate purposes, including repaying other debt and capital expenditures.
The natural gas company is based in Tulsa, Okla.
| Issuer: | Oneok Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-manager: | Tudor, Pickering, Holt & Co. Securities, LLC
|
| Trade date: | May 4
|
| Settlement date: | May 7
|
| Rating: | S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 15, 2025
|
| Coupon: | 5.85%
|
| Price: | 99.943
|
| Yield: | 5.864%
|
| Spread: | Treasuries plus 550 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2025, then a par call
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 15, 2030
|
| Coupon: | 6.35%
|
| Price: | 99.667
|
| Yield: | 6.395%
|
| Spread: | Treasuries plus 575 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2030, then a par call
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | Jan. 15, 2050
|
| Coupon: | 7.15%
|
| Price: | 99.632
|
| Yield: | 7.181%
|
| Spread: | Treasuries plus 587.5 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until July 15, 2050, then a par call
|
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