Published on 3/6/2020 in the Prospect News Investment Grade Daily.
New Issue: Oneok details $1.65 billion fixed-rate senior notes in three tranches
By Devika Patel
Knoxville, Tenn., March 6 – Oneok Inc. offered further details about a $1.65 billion sale of guaranteed senior notes (Baa3/BBB) that priced in three tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The deal included $400 million of 2.2% 5.5-year notes. These notes priced at 99.922 to yield 2.215%, or 155 basis points over Treasuries.
There was $850 million of 3.1% 10-year notes. These notes priced at 99.897 to yield 3.112% at a spread of Treasuries plus 220 bps.
The company also priced $400 million of 4.5% 30-year notes. These notes priced at 99.852 to yield 4.509% at a spread of Treasuries plus 295 bps.
Barclays, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., TD Securities (USA) LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC were the bookrunners.
The bonds are guaranteed by Oneok Partners LP and Oneok Partners Intermediate LP.
Proceeds will be used to repay commercial paper and for general corporate purposes.
Oneok is a midstream service provider and natural gas company based in Tulsa, Okla.
| Issuer: | Oneok Inc.
|
| Guarantors: | Oneok Partners LP and Oneok Partners Intermediate LP
|
| Amount: | $1.65 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., TD Securities (USA) LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Regions Securities LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., Siebert Williams Shank & Co., LLC and Tuohy Brothers Investment Research Inc.
|
| Trade date: | March 5
|
| Settlement date: | March 10
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 5.5-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2025
|
| Coupon: | 2.2%
|
| Price: | 99.922
|
| Yield: | 2.215%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Aug. 15, 2025, then a par call
|
|
|
| 10-year notes
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| Amount: | $850 million
|
| Maturity: | March 15, 2030
|
| Coupon: | 3.1%
|
| Price: | 99.897
|
| Yield: | 3.112%
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Dec. 15, 2029, then a par call
|
|
|
| 30-year notes
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| Amount: | $400 million
|
| Maturity: | March 15, 2050
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| Coupon: | 4.5%
|
| Price: | 99.852
|
| Yield: | 4.509%
|
| Spread: | Treasuries plus 295 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps until Sept. 15, 2049, then a par call
|
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