Oneok accepts tenders for $152 million 4.25% notes, no 6% notes

By Toni Weeks

San Luis Obispo, Calif., Feb. 11 - Oneok, Inc. announced in a press release the final results for the oversubscribed cash tender offer for its 4.25% notes due 2022 and its 6% notes due 2035.

As of the expiration date, 12:01 a.m. ET on Feb. 11, the company received tenders for $438.7 million, or 62.68%, of its outstanding $700 million of notes and $114.6 million, or 28.65%, of its outstanding $400 million of 6% notes due 2035.

Because the company limited the offer to a maximum of $150 million, excluding accrued interest, and prioritized the 4.25% notes over the 6% notes, Oneok accepted $152.6 million, or 21.8% principal amount of the outstanding notes, equivalent to a proration factor of 0.348021. The company accepted none of the 6% notes for purchase and will return those notes to their holders.

Holders had tendered $436.8 million, or 62.39%, of the 4.25% notes and $113.6 million, or 28.4%, of the 6% notes by the early tender deadline, 5 p.m. ET on Jan. 27.

As previously reported, pricing was 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 plus 223 bps for the 6% notes.

The total payment for each $1,000 principal amount was $983.07 for the 4.25% notes and $1,011.47 for the 6% notes, which included a $30.00 early tender payment per $1,000 principal amount of notes tendered by the early tender deadline. Those who tendered after the early tender date received the total amount less the early payment.

Holders also received accrued interest to but excluding the payment date.

Oneok paid for the accepted notes on Feb. 11, according to the release.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057 collect) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811 collect) were the lead dealer managers for the tender offers. The tender agent was D.F. King & Co., Inc. (212 269-5550 or e-mail oneok@dfking.com).

Oneok, a Tulsa, Okla.-based diversified energy company, began the tender offers on Jan. 14.

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