By Cristal Cody
Tupelo, Miss., March 11 – Oneok Inc. priced $1.25 billion of guaranteed senior notes (Baa3/BBB) in new and reopened tranches on Monday, according to a market source.
The company sold $700 million of 10-year notes at a spread of 175 basis points over Treasuries, on the tight side of guidance.
A $550 million add-on to Oneok’s 5.2% notes due July 15, 2048 priced with a Treasuries plus 223 bps spread. Price guidance was in the Treasuries plus 225 bps area, plus or minus 5 bps.
The company originally sold $450 million of the 30-year notes on June 19, 2018 at 99.546 to yield 5.23%, or a Treasuries plus 220 bps spread. The total outstanding is now $1 billion.
Barclays, Goldman Sachs & Co. LLC, MUFG and TD Securities (USA) LLC were the lead managers.
The bonds are guaranteed by Oneok Partners LP and Oneok Partners Intermediate LP.
Proceeds will be used for general corporate purposes.
Oneok is a midstream service provider and natural gas company 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: | $1.25 billion
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| Description: | Senior notes
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| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, MUFG and TD Securities (USA) LLC
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| Trade date: | March 11
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $700 million
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| Maturity: | March 15, 2029
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| Coupon: | 4.35%
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| Spread: | Treasuries plus 175 bps
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| Price guidance: | Treasuries plus 180 bps area, plus or minus 5 bps; initial talk at Treasuries plus 195 bps area
|
|
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| Add-on to 2048 notes
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| Amount: | $550 million reopening
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| Maturity: | July 15, 2048
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| Coupon: | 5.2%
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| Spread: | Treasuries plus 223 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps; on or after Jan. 15, 2048 at par
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| Price guidance: | Treasuries plus 225 bps area, plus or minus 5 bps; initial talk at Treasuries plus 240 bps area
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| Total outstanding: | $1 billion, including $450 million of notes priced June 19, 2018 at 99.546 to yield 5.23%, or a Treasuries plus 220 bps spread
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