Published on 7/10/2017 in the Prospect News Investment Grade Daily.
New Issue: Oneok prices $1.2 billion of 10-, 30-year fixed-rate senior notes
By Cristal Cody
Tupelo, Miss., July 10 – Oneok Inc. sold $1.2 billion of guaranteed fixed-rate senior notes (Baa3/BBB) in two tranches on Monday, according to a news release and an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 4% 10-year notes at 99.845 to yield 4.019% and a spread of Treasuries plus 165 basis points.
The $700 million tranche of 4.95% 30-year notes was sold at 98.753 to yield 5.031%, or a Treasuries plus 210 bps spread.
Citigroup Global Markets Inc., Barclays, BofA Merrill Lynch, Mizuho Securities USA Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
The securities are guaranteed by Oneok Partners LP and Oneok Partners Intermediate LP.
Proceeds will be used for general corporate purposes, including debt repayment and capital expenditures.
Oneok is a natural gas company based in Tulsa, Okla.
| Issuer: | Oneok Inc.
|
| Guarantors: | Oneok Partners LP and Oneok Partners Intermediate LP
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays, BofA Merrill Lynch, Mizuho Securities USA Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BB&T Capital Markets, BOK Financial Services, Inc. and Regions Securities LLC
|
| Trade date: | July 10
|
| Settlement date: | July 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | July 13, 2027
|
| Coupon: | 4%
|
| Price: | 99.845
|
| Yield: | 4.019%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps; on or after April 13, 2027 at par
|
|
|
| 30-year notes
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| Amount: | $700 million
|
| Maturity: | July 13, 2047
|
| Coupon: | 4.95%
|
| Price: | 98.753
|
| Yield: | 5.031%
|
| Spread: | Treasuries plus 210 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps; on or after Jan. 13, 2047 at par
|
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