Published on 8/13/2019 in the Prospect News Investment Grade Daily.
New Issue: Oneok details $2 billion of guaranteed fixed-rate senior notes in three tranches
By Devika Patel
Knoxville, Tenn., Aug. 13 – Oneok Inc. offered further details about a $2 billion sale of guaranteed senior notes (Baa3/BBB) that priced in three tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
A $500 million tranche of five-year notes priced with a 2.75% coupon at a Treasuries plus 130 bps spread. These notes priced at 99.807 to yield 2.791%.
The company sold $750 million of 3.4% 10-year notes at a Treasuries plus 180 bps spread. These notes priced at 99.644 to yield 3.442%.
Oneok priced $750 million of 4.45% 30-year notes at a Treasuries plus 235 bps spread. These notes priced at 99.505 to yield 4.48%.
J.P. Morgan Securities, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
The bonds are guaranteed by Oneok Partners LP and Oneok Partners Intermediate LP.
Proceeds will be used to redeem in full the company’s $300 million of 3.8% senior notes due 2020 and for general corporate purposes.
Oneok is a midstream service provider and natural gas company based in Tulsa, Okla.
| Issuer: | Oneok Inc.
|
| Guarantors: | Oneok Partners LP and Oneok Partners Intermediate LP
|
| Amount: | $2 billion
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| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BOK Financial Securities, Inc., RBC Capital Markets, LLC, Siebert Cisneros Shank & Co., LLC, Tuohy Brothers Investment Research, Inc. and Williams Capital Group, LP
|
| Trade date: | Aug. 12
|
| Settlement date: | Aug. 15
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $500 million
|
| Maturity: | Sept. 1, 2024
|
| Coupon: | 2.75%
|
| Price: | 99.807
|
| Yield: | 2.791%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Aug. 1, 2024, then a par call
|
|
|
| 10-year notes
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| Amount: | $750 million
|
| Maturity: | Sept. 1, 2029
|
| Coupon: | 3.4%
|
| Price: | 99.644
|
| Yield: | 3.442%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until June 1, 2029, then a par call
|
|
|
| 30-year notes
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| Amount: | $750 million
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| Maturity: | Sept. 1, 2049
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| Coupon: | 4.45%
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| Price: | 99.505
|
| Yield: | 4.48%
|
| Spread: | Treasuries plus 235 bps
|
| Call: | Make-whole call at Treasuries plus 37.5 bps until March 1, 2049, then a par call
|
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