Published on 3/17/2015 in the Prospect News Investment Grade Daily.
New Issue: Oneok sells upsized $800 million of senior notes in two tranches
By Aleesia Forni
Virginia Beach, March 17 – Oneok Partners, LP priced an upsized $800 million offering of senior notes (Baa2/BBB/) in tranches due 2020 and 2025 on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $300 million of 3.8% senior notes due 2020 at 225 basis points over Treasuries. Pricing was at 99.982 to yield 3.804%.
The notes sold at the tight end of guidance set in the 237.5 bps area over Treasuries.
A second tranche was $500 million of 4.9% notes due 2025 sold at 99.79 to yield 4.927%, or Treasuries plus 287.5 bps.
Guidance was set in the 300 bps area over Treasuries.
The notes are guaranteed by Oneok Partners Intermediate LP.
J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., MUFG and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to repay amounts under a $1.7 billion commercial paper program and for general corporate purposes.
The natural gas company is based in Tulsa, Okla.
| Issuer: | Oneok Partners, LP
|
| Guarantor: | Oneok Partners Intermediate LP
|
| Issue: | Senior notes
|
| Amount: | $800 million, upsized from $600 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., MUFG, U.S. Bancorp Investments Inc.
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, BB&T Capital Markets
|
| Trade date: | March 17
|
| Settlement date: | March 20
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | March 15, 2020
|
| Coupon: | 3.8%
|
| Price: | 99.982
|
| Yield: | 3.804%
|
| Spread: | 225 bps over Treasuries
|
| Price guidance: | 237.5 bps area over Treasuries
|
| Make-whole call: | 35 bps prior to Feb. 15, 2020, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2025
|
| Coupon: | 4.9%
|
| Price: | 99.79
|
| Yield: | 4.927%
|
| Spread: | 287.5 bps over Treasuries
|
| Price guidance: | 300 bps area over Treasuries
|
| Make-whole call: | 45 bps prior to Dec. 15, 2024, then callable at par
|
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