By Andrea Heisinger
New York, Jan. 21 - Oneok Partners, LP sold $1.3 billion of senior notes (Baa2/BBB/) in two tranches late on Friday, a source who worked on the deal said.
A $650 million tranche of 3.25% five-year notes sold at 99.94 to yield 3.263% with a spread of Treasuries plus 125 basis points. Price talk was in the 130 bps area, with the notes coming in at the tight end of that talk.
The five-year notes are callable at a make-whole of 20 bps over Treasuries until Jan. 1, 2016 and at par after that date.
A $650 million tranche of 6.125% 30-year bonds priced at 99.36 to yield 6.172% with a spread of 160 bps over Treasuries. The notes priced in line with talk in the low 160 bps.
The 30-year bonds have a make-whole call at 25 bps over Treasuries until Aug. 1, 2040 and are callable at par afterward.
Bookrunners were Citigroup Global Markets Inc., RBS Securities Inc. and UBS Securities LLC.
J.P. Morgan Securities LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities LLC were the senior co-managers.
Junior co-managers were Barclays Capital Inc., BNP Paribas Securities Corp., Daiwa Capital Markets America Inc. and U.S. Bancorp Investments Inc.
Proceeds are being used to repay amounts outstanding under a $1 billion commercial paper program, to repay amounts at maturity of $225 million senior notes due March 2011, and for general partnership purposes.
The securities are guaranteed by Oneok Partners Intermediate LP.
The natural gas transportation, gathering and processing company is based in Tulsa, Okla.
| Issuer: | Oneok Partners, LP
|
| Guarantor: | Oneok Partners Intermediate LP
|
| Issue: | Senior notes
|
| Amount: | $1.3 billion
|
| Bookrunners: | Citigroup Global Markets Inc., RBS Securities Inc., UBS Securities LLC
|
| Senior co-managers: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities LLC
|
| Junior co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Daiwa Capital Markets America Inc., U.S. Bancorp Investments Inc.
|
| Trade date: | Jan. 21
|
| Settlement date: | Jan. 26
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 1, 2016
|
| Coupon: | 3.25%
|
| Price: | 99.94
|
| Yield: | 3.263%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Jan. 1, 2016, then at par
|
| Price talk: | 130 bps area
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | Feb. 1, 2041
|
| Coupon: | 6.125%
|
| Price: | 99.36
|
| Yield: | 6.172%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Aug. 1, 2040, and then at par
|
| Price talk: | Low 160 bps
|
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