Oneok tenders for $150 million 4.25% notes due 2022, 6% notes due 2035

By Susanna Moon

Chicago, Jan. 14 - Oneok, Inc. said it began a cash tender offer for its $700 million of 4.25% notes due 2022 and its $400 million of 6% notes due 2035.

The maximum payment amount will be $150 million, excluding accrued interest, according to a company press release. The notes are listed in order of priority acceptance level.

Pricing will be set on Jan. 27 using the bid-side price of the 2.75% Treasury note due Nov. 15, 2023 plus 175 basis points for the 4.25% notes and 3.625% Treasury note due Aug. 15, 2043 for 5% notes.

The hypothetical total payment for each $1,000 principal amount is $976.00 for the 4.25% notes and $995.74 for the 5% notes, set at 2 p.m. ET on Jan. 10.

The total purchase price will includes a $30.00 early tender payment per $1,000 principal amount of notes tendered by 5 p.m. ET on Jan. 27, the early tender deadline.

Those who tender after the early tender date will receive the total amount less the consent payment.

Holders also will receive accrued interest to but excluding the payment date.

The tender offer will end at 12:01 a.m. ET on Feb. 11.

Tendered notes may be withdrawn by the early tender deadline.

For questions, call Morgan Stanley & Co. LLC at 800 624-1808 or 212 761-1057 collect or J.P. Morgan at 866 834-4666 or 212 834-4811 collect. The tender agent is D.F. King & Co., Inc. (212 269-5550 or email ONEOK@dfking.com).

Oneok is a Tulsa, Okla.-based diversified energy company.

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