ONEOK Announces $7.0 Billion Notes Offering
ONEOK (NYSE: OKE) has announced a $7.0 billion senior notes offering with various maturities and coupon rates. The net proceeds, expected to be approximately $6.92 billion, will primarily fund the acquisition of Global Infrastructure Partners' interests in EnLink Midstream, and Medallion Midstream, . The offering includes:
- $1.25 billion of 3-year notes at 4.25%
- $600 million of 5-year notes at 4.40%
- $1.25 billion of 7-year notes at 4.75%
- $1.60 billion of 10-year notes at 5.05%
- $1.50 billion of 30-year notes at 5.70%
- $800 million of 40-year notes at 5.85%
The offering is expected to close around September 24, 2024, subject to customary conditions. Any remaining proceeds will be used for general corporate purposes, including potential debt repayment.
ONEOK (NYSE: OKE) ha annunciato un'offerta di 7,0 miliardi di dollari in obbligazioni senior con varie scadenze e tassi di interesse. L'importo netto, che dovrebbe essere di circa 6,92 miliardi di dollari, sarà principalmente utilizzato per finanziare l'acquisizione delle partecipazioni di Global Infrastructure Partners in EnLink Midstream e Medallion Midstream. L'offerta include:
- 1,25 miliardi di dollari di obbligazioni a 3 anni con un tasso del 4,25%
- 600 milioni di dollari di obbligazioni a 5 anni con un tasso del 4,40%
- 1,25 miliardi di dollari di obbligazioni a 7 anni con un tasso del 4,75%
- 1,60 miliardi di dollari di obbligazioni a 10 anni con un tasso del 5,05%
- 1,50 miliardi di dollari di obbligazioni a 30 anni con un tasso del 5,70%
- 800 milioni di dollari di obbligazioni a 40 anni con un tasso del 5,85%
Si prevede che l'offerta si chiuda intorno al 24 settembre 2024, soggetta a condizioni usuali. Eventuali proventi rimanenti saranno utilizzati per scopi aziendali generali, compreso il potenziale rimborso del debito.
ONEOK (NYSE: OKE) ha anunciado una oferta de notas senior de 7,0 mil millones de dólares con diferentes vencimientos y tasas de interés. Se espera que los ingresos netos, que sean aproximadamente 6,92 mil millones de dólares, se destinen principalmente a la adquisición de los intereses de Global Infrastructure Partners en EnLink Midstream y Medallion Midstream. La oferta incluye:
- 1,25 mil millones de dólares en notas a 3 años con un 4,25%
- 600 millones de dólares en notas a 5 años con un 4,40%
- 1,25 mil millones de dólares en notas a 7 años con un 4,75%
- 1,60 mil millones de dólares en notas a 10 años con un 5,05%
- 1,50 mil millones de dólares en notas a 30 años con un 5,70%
- 800 millones de dólares en notas a 40 años con un 5,85%
Se espera que la oferta cierre alrededor del 24 de septiembre de 2024, sujeto a condiciones habituales. Cualquier ingreso restante se utilizará para fines corporativos generales, incluido el posible pago de deuda.
ONEOK (NYSE: OKE)는 다양한 만기일과 이자율을 가진 70억 달러의 고급 채권 제공을 발표했습니다. 순 proceeds는 약 69억 2천만 달러가 될 것으로 예상되며, 이는 주로 Global Infrastructure Partners의 EnLink Midstream 및 Medallion Midstream 지분 인수에 사용될 것입니다. 이 제공에는 다음이 포함됩니다:
- 3년 만기 채권 12.5억 달러, 이자율 4.25%
- 5년 만기 채권 6억 달러, 이자율 4.40%
- 7년 만기 채권 12.5억 달러, 이자율 4.75%
- 10년 만기 채권 16억 달러, 이자율 5.05%
- 30년 만기 채권 15억 달러, 이자율 5.70%
- 40년 만기 채권 8억 달러, 이자율 5.85%
이 제공은 2024년 9월 24일 경에 마감될 것으로 예상되며, 일반적인 조건에 따라 진행됩니다. 남은 수익은 일반 기업 목적, 특히 잠재적인 부채 상환을 위해 사용됩니다.
ONEOK (NYSE: OKE) a annoncé une offre de billets senior de 7,0 milliards de dollars avec diverses échéances et taux d'intérêt. Les recettes nettes, qui devraient être d'environ 6,92 milliards de dollars, seront principalement utilisées pour financer l'acquisition des participations de Global Infrastructure Partners dans EnLink Midstream et Medallion Midstream. L'offre comprend :
- 1,25 milliard de dollars de billets à 3 ans au taux de 4,25%
- 600 millions de dollars de billets à 5 ans au taux de 4,40%
- 1,25 milliard de dollars de billets à 7 ans au taux de 4,75%
- 1,60 milliard de dollars de billets à 10 ans au taux de 5,05%
- 1,50 milliard de dollars de billets à 30 ans au taux de 5,70%
- 800 millions de dollars de billets à 40 ans au taux de 5,85%
L'offre devrait se clôturer aux alentours du 24 septembre 2024, sous réserve des conditions habituelles. Les fonds restants seront utilisés à des fins générales de l'entreprise, y compris le remboursement potentiel de la dette.
ONEOK (NYSE: OKE) hat eine Anleiheangebot für 7,0 Milliarden Dollar mit verschiedenen Laufzeiten und Zinssätzen angekündigt. Die Nettomittel, die voraussichtlich etwa 6,92 Milliarden Dollar betragen werden, sollen hauptsächlich zur Finanzierung der Übernahme von Global Infrastructure Partners' Anteilen an EnLink Midstream und Medallion Midstream verwendet werden. Das Angebot umfasst:
- 1,25 Milliarden Dollar an 3-jährigen Anleihen mit 4,25%
- 600 Millionen Dollar an 5-jährigen Anleihen mit 4,40%
- 1,25 Milliarden Dollar an 7-jährigen Anleihen mit 4,75%
- 1,60 Milliarden Dollar an 10-jährigen Anleihen mit 5,05%
- 1,50 Milliarden Dollar an 30-jährigen Anleihen mit 5,70%
- 800 Millionen Dollar an 40-jährigen Anleihen mit 5,85%
Das Angebot wird voraussichtlich um den 24. September 2024 geschlossen, vorbehaltlich der üblichen Bedingungen. Alle verbleibenden Mittel werden für allgemeine Unternehmenszwecke verwendet, einschließlich der möglichen Rückzahlung von Schulden.
- Large $7.0 billion senior notes offering to fund strategic acquisitions
- Diverse maturity profile ranging from 3 to 40 years
- Competitive interest rates ranging from 4.25% to 5.85%
- Potential for debt repayment with remaining proceeds
- Significant increase in long-term debt obligations
- Potential interest rate risk, especially on longer-term notes
- Risk of special mandatory redemption if EnLink Transaction is not completed
ONEOK's
The special mandatory redemption clause for shorter-term notes provides a safety net for investors if the EnLink Transaction falls through. However, it's important to note that this massive debt issuance will increase ONEOK's leverage, potentially impacting its financial flexibility and credit metrics in the short term. The success of this strategy will heavily depend on the synergies and cash flow generation from the acquired assets to offset the increased interest expenses, which will be approximately
This substantial notes offering by ONEOK signals a significant shift in the midstream energy sector landscape. The company's move to acquire GIP's interests in EnLink and Medallion Midstream suggests a strategic consolidation trend in the industry. This could potentially lead to increased efficiency and economies of scale, which might benefit ONEOK in the long run.
However, investors should be cautious about the timing of this massive debt issuance. With the Federal Reserve's recent hawkish stance on interest rates, ONEOK might be locking in these rates before potential further increases. The market's reaction to this offering will be important to watch, as it could set a precedent for other energy companies considering similar large-scale acquisitions or refinancing options. The success of this strategy could potentially trigger a wave of consolidation in the midstream sector, reshaping the competitive landscape.
The special mandatory redemption clause for the 3-year, 5-year and 7-year notes is a critical legal protection for investors. This provision ensures that if the EnLink Transaction doesn't materialize, investors in these shorter-term notes can recoup their investment. It's a prudent move that aligns the debt issuance with the specific purpose of the acquisition.
The extensive list of underwriters, including major financial institutions, suggests a broad distribution of the notes, which could help mitigate risk. The clear disclosure of the use of proceeds and the registration with the SEC demonstrates ONEOK's commitment to regulatory compliance and transparency. However, investors should carefully review the prospectus and prospectus supplement for full details on risks and terms, particularly regarding the conditions of the special mandatory redemption and any covenants that may affect ONEOK's operational flexibility post-acquisition.
$1.25 billion 4.25% .$600 million 4.40% .$1.25 billion 4.75% .$1.60 billion 5.05% .$1.50 billion 5.70% .$800 million 5.85% .
The net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, are expected to be approximately
The 3-year notes, the 5-year notes and the 7-year notes will be subject to a "special mandatory redemption" if the EnLink Transaction is not completed on or before the EnLink Outside Date (as described in the prospectus supplement); prior to the EnLink Outside Date, the EnLink Purchase Agreement is terminated; or ONEOK otherwise notifies the trustee in writing that it will not pursue the consummation of the EnLink Transaction.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Mizuho Securities
CIBC World Markets Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc.,
This news release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
A registration statement relating to the notes was previously filed with, and became effective under the rules of, the Securities and Exchange Commission (SEC). ONEOK offered the notes to the public by means of a prospectus and prospectus supplement, which are part of the registration statement.
A copy of the prospectus and prospectus supplement may be obtained from:
J.P. Morgan Securities LLC
383 Madison Avenue
Attention: Investment Grade Syndicate Desk
Telephone: (212) 834-4533 (collect)
Goldman Sachs & Co. LLC
200 West Street
Attention: Prospectus Department
Telephone: 1-866-471-2526
E-mail: prospectus-ny@ny.email.gs.com
Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Telephone: 1-888-603-5847
Email: barclaysprospectus@broadridge.com
BofA Securities, Inc.
NC1-022-02-25
201 North Tryon Street
Charlotte, NC 28255-0001
Attn: Prospectus Department
Email: dg.prospectus_requests@bofa.com
Wells Fargo Securities, LLC
Attn: WFS Customer Service
608 2nd Avenue South, Suite 1000
Telephone: 1-800-645-3751
Email: wfscustomerservice@wellsfargo.com
An electronic copy of the registration statement and prospectus supplement, together with the base prospectus, is available on the SEC's website at www.sec.gov.
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation and storage services. Through our more than 50,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in
ONEOK is an S&P 500 company headquartered in
FORWARD-LOOKING STATEMENTS:
This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this communication that address activities, events or developments that ONEOK expects, believes or anticipates will or may occur in the future are forward-looking statements.
Words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "opportunity," "create," "intend," "could," "would," "may," "plan," "will," "guidance," "look," "goal," "target," "future," "build," "focus," "continue," "strive," "allow" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking.
These forward-looking statements include, but are not limited to, statements regarding prevailing market conditions, the expected closing of the offering of notes and the use of proceeds therefrom. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. These include the risk that the credit ratings following the proposed transactions may be different from what ONEOK expects; the risk that a condition to closing of either of the proposed transactions may not be satisfied, that any party may terminate the applicable definitive agreements or that the closing of either of the proposed transactions might be delayed or not occur at all; the risk of potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transactions; the risk that the parties do not receive regulatory approval of the proposed transactions; risks related to the occurrence of any other event, change or circumstance that could give rise to the termination of the proposed transactions; the risk that changes in ONEOK's capital structure could have adverse effects on the market value of its securities; the risk that ONEOK may be unable to reduce expenses or access financing or liquidity; risks related to the impact of any economic downturn and any substantial decline in commodity prices; and other important factors that could cause actual results to differ materially from those projected.
All such factors are difficult to predict and are beyond ONEOK's control, including those detailed in ONEOK's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that are available on ONEOK's website at www.oneok.com and on the website of the SEC at www.sec.gov. All forward-looking statements are based on assumptions that ONEOK believes to be reasonable but that may not prove to be accurate. Any forward-looking statement speaks only as of the date on which such statement is made, and ONEOK does not undertake any obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Brad Borror |
918-588-7582 |
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SOURCE ONEOK, Inc.
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