By Paul A. Harris
Portland, Ore., Aug. 18 – Oneok Inc. priced a $500 million issue of non-callable 7½% eight-year senior notes (Ba1/BB+) at 98.522 to yield 7¾% on Tuesday, according to an informed source.
The yield came on top of yield talk.
Citigroup Global Markets Inc. was the bookrunner.
The Tulsa, Okla.-based natural gas company plans to use the proceeds to fund the acquisition of limited partner units of Oneok Partners LP (OKS) under an Equity Support Agreement, which will then be used to repay commercial paper at OKS and fund capital expenditures at OKS.
| Issuer: | Oneok Inc.
|
| Face amount: | $500 million
|
| Proceeds: | $492.61 million
|
| Maturity: | Sept. 1, 2023
|
| Securities: | Senior notes
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Co-manager: | Mizuho Bank
|
| Coupon: | 7½%
|
| Price: | 98.522
|
| Yield: | 7¾%
|
| Spread: | 569 bps
|
| Call: | Non-callable (make whole call at Treasuries plus 50 bps until June 1, 2023, then callable at par)
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 18
|
| Settlement date: | Aug. 21
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's; BB+
|
| Distribution: | SEC registered
|
| Price talk: | 7¾% area
|
| Marketing: | Roadshow
|
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