By Andrea Heisinger
New York, Sept. 10 - Oneok Partners, LP priced a reallocated $1.3 billion issue of senior notes (Baa2/BBB/) on Monday after adding a tranche to its initial plans for five-year notes, a syndicate source said.
The $400 million of 2% five-year notes sold at 99.713 to yield 2.06% with a spread of Treasuries plus 140 basis points. There is a make-whole call at 25 bps over Treasuries.
A $900 million tranche of 3.375% 10-year notes priced at 99.576 to yield 3.425% with a spread of 175 bps over Treasuries. The notes have a make-whole call at 30 bps over Treasuries.
The notes are guaranteed by Oneok Partners Intermediate LP.
RBS Securities Inc., Mitsubishi UFJ Securities (USA) Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to repay amounts under a $1.2 billion commercial paper program and for general corporate purposes, including capital expenditures.
The natural gas company is based in Tulsa, Okla.
| Issuer: | Oneok Partners, LP
|
| Guarantor: | Oneok Partners Intermediate LP
|
| Issue: | Senior notes
|
| Amount: | $1.3 billion
|
| Bookrunners: | RBS Securities Inc., Mitsubishi UFJ Securities (USA) Inc., U.S. Bancorp Investments Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Oct. 1, 2017
|
| Coupon: | 2%
|
| Price: | 99.713
|
| Yield: | 2.06%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Oct. 1, 2022
|
| Coupon: | 3.375%
|
| Price: | 99.576
|
| Yield: | 3.425%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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