By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Aug. 11 – Oneok Inc. provided details for its $5.25 billion five-tranche offering of senior notes (Baa2/BBB/BBB) from Thursday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company priced $750 million of 5.55% senior notes due Nov. 1, 2026 at 99.886 to yield 5.583%, or at Treasuries plus 105 basis points after talk in the Treasuries plus 150 bps area.
Oneok priced $750 million of senior notes 5.65% senior notes due Nov. 1, 2028 at 99.869 to yield 5.675%, or at Treasuries plus 145 bps. Price talk was in the Treasuries plus 185 bps area.
The company sold $500 million of 5.8% senior notes due Nov. 1, 2030 at 99.805 to yield 5.83%, or at Treasuries plus 165 bps after talk in the Treasuries plus 205 bps area.
It priced $1.5 billion of 6.05% senior notes due Sept. 1, 2033 at 99.976 to yield 6.053%, or at Treasuries plus 195 bps. The notes were talked in the Treasuries plus 225 bps area.
Oneok also priced $1.75 billion of 6.625% senior notes due Sept. 1, 2053 at 99.507 to yield 6.663%, or at Treasuries plus 240 bps after talk in the Treasuries plus 275 bps area.
Each of the notes will have a make-whole call option until the par call dates, which are one month, two months, three months and six months before maturity.
The 2026 notes feature a make-whole call at Treasuries plus 20 bps before Oct. 1, 2026 and on or after that date at par.
The 2028 notes are callable at a make-whole premium of Treasuries plus 25 bps before Oct. 1, 2028 and on or after that date at par.
The 2030 notes feature a make-whole call at Treasuries plus 25 bps before Sept. 1, 2030 and on or after that date at par.
The 2033 notes are callable at Treasuries plus 30 bps before the par call date of June 1, 2033. On or after that date, they are callable at par.
Finally, the 2053 notes feature a make-whole call at Treasuries plus 40 bps before March 1, 2053 and on or after that date at par.
Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used to fund the cash consideration for the merger with Magellan Midstream Partners, LP and other merger-related costs. The offering is not conditioned upon the consummation of the merger. The merger is not a condition to the consummation of the offering. The notes will be subject to a special mandatory redemption if the merger is not completed on or before May 14, 2024.
Oneok Partners, LP and Oneok Partners Intermediate LP are guaranteeing the notes.
The natural gas company is based in Tulsa, Okla.
| Issuer: | Oneok Inc.
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| Guarantors: | Oneok Partners, LP and Oneok Partners Intermediate LP
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| Amount: | $5.25 billion
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| Description: | Senior notes
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| Bookrunners: | Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Senior co-managers: | CIBC World Markets Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc
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| Co-managers: | BOK Financial Securities, Inc., Academy Securities, Inc., Loop Capital Markets LLC and R. Seelaus & Co., LLC
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| Counsel to issuer: | Gable & Gotwals, PC and Kirkland & Ellis LLP
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| Counsel to underwriters: | Paul Hastings LLP
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| Trustee: | U.S. Bank Trust Co., NA
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| Mandatory redemption: | If merger with Magellan Midstream Partners, LP is not completed by May 14, 2024
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| Trade date: | Aug. 10
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| Settlement date: | Aug. 24
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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|
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| 2026 notes
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| Amount: | $750 million
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| Maturity: | Nov. 1, 2026
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| Coupon: | 5.55%
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| Price: | 99.886
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| Yield: | 5.583%
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| Spread: | Treasuries plus 105 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps before Oct. 1, 2026; after at par
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| Price talk: | Treasuries plus 150 bps area
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| Cusip: | 682680BH5
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|
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| 2028 notes
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| Amount: | $750 million
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| Maturity: | Nov. 1, 2028
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| Coupon: | 5.65%
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| Price: | 99.869
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| Yield: | 5.675%
|
| Spread: | Treasuries plus 145 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps before Oct. 1, 2028; after at par
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| Price talk: | Treasuries plus 185 bps area
|
| Cusip: | 682680BJ1
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|
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| 2030 notes
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| Amount: | $500 million
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| Maturity: | Nov. 1, 2030
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| Coupon: | 5.8%
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| Price: | 99.805
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| Yield: | 5.83%
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| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Sept. 1, 2030; after at par
|
| Price talk: | Treasuries plus 205 bps area
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| Cusip: | 682680BK8
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|
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| 2033 notes
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| Amount: | $1.5 billion
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| Maturity: | Sept. 1, 2033
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| Coupon: | 6.05%
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| Price: | 99.976
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| Yield: | 6.053%
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| Spread: | Treasuries plus 195 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps before June 1, 2033; after at par
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| Price talk: | Treasuries plus 225 bps area
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| Cusip: | 682680BL6
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|
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| 2053 notes
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| Amount: | $1.75 billion
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| Maturity: | Sept. 1, 2053
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| Coupon: | 6.625%
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| Price: | 99.507
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| Yield: | 6.663%
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| Spread: | Treasuries plus 240 bps
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| Call features: | Make-whole call at Treasuries plus 40 bps before March 1, 2053; after at par
|
| Price talk: | Treasuries plus 275 bps area
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| Cusip: | 682680BN2
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