Published on 3/12/2019 in the Prospect News Investment Grade Daily.
New Issue: Oneok details $1.25 billion sale of 10-year notes, add-on to 5.2% notes due 2048
By Cristal Cody
Tupelo, Miss., March 12 – Oneok Inc. provided additional details of its $1.25 billion sale of guaranteed senior notes (Baa3/BBB) in new and reopened tranches on Monday in an FWP filing with the Securities and Exchange Commission.
The company sold $700 million of 10-year notes at a spread of 175 basis points over Treasuries, on the tight side of guidance. The notes priced at 99.687 to yield 4.389%.
A $550 million add-on to Oneok’s 5.2% notes due July 15, 2048 priced at 99.086 to yield 5.261%, or 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, TD Securities (USA) LLC, BofA Merrill Lynch, Scotia Capital (USA) Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, 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 services provider and natural gas company based in Tulsa, Okla.
| Issuer: | Oneok Inc.
|
| 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, TD Securities (USA) LLC, BofA Merrill Lynch, Scotia Capital (USA) Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BB&T Capital Markets, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc. and Williams Capital Group, LP
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| Trade date: | March 11
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| Settlement date: | March 13
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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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| Price: | 99.687
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| Yield: | 4.389%
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| Spread: | Treasuries plus 175 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps; on or after Dec. 15, 2028 at par
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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 notes due 2048
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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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| Price: | 99.086
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| Yield: | 5.261%
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| Spread: | Treasuries plus 223 bps
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| Call features: | Make-whole call at Treasuries plus 35 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
|
| Total outstanding: | $1 billion, including $450 million of notes priced June 19, 2018 at 99.546 to yield 5.23%, or Treasuries plus 220 bps
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