ONEOK Announces $750 Million Notes Offering

Rhea-AI Summary

ONEOK, Inc. (NYSE: OKE) has announced a pricing of its $750 million offering of 10-year senior notes with a 6.10% coupon. The net proceeds are expected to be $742 million and will primarily be used to repay outstanding amounts under its commercial paper program. If there are excess proceeds, they will be allocated towards other debts or for general corporate purposes. The offering is set to close on Nov. 18, 2022, subject to customary conditions.

Positive

• Successfully pricing $750 million in senior notes indicating strong market interest.
• Expected net proceeds of $742 million to strengthen financial position.

Negative

• None.

TULSA, Okla., Nov. 15, 2022 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced that it has priced an offering to sell $750 million of 10-year senior notes at a coupon of 6.10%.

The net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, are expected to be $742 million. ONEOK intends to use the net proceeds to repay amounts outstanding under its commercial paper program. To the extent the net proceeds from the offering exceed the amounts outstanding under its commercial paper program, ONEOK intends to use the additional net proceeds to repay other indebtedness, or for general corporate purposes. ONEOK expects the notes offering to close on or about Nov. 18, 2022, subject to the satisfaction of customary closing conditions.

Barclays Capital Inc., Mizuho Securities USA LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, and Truist Securities, Inc. are acting as joint book-running managers for the offering. BOK Financial Securities, Inc., Academy Securities, Inc. and R. Seelaus & Co., LLC are the co-managers for the offering.

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. 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 by contacting the joint book-running managers as follows:

Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Email: barclaysprospectus@broadridge.com
Toll-free: 1-888-603-5847

Mizuho Securities USA LLC
Attn: Debt Capital Markets
1271 Avenue of the Americas
New York, NY 10020
Phone: 1-866-271-7403

TD Securities (USA) LLC
1 Vanderbilt Avenue, 11th Floor
New York, NY 10017
Toll-free: 1-855-495-9846

Wells Fargo Securities, LLC
608 2nd Avenue South, Suite 1000
Minneapolis, Minnesota 55402
Attention: WFS Customer Service
Toll-free: 800-645-3751
E-mail: wfscustomerservice@wellsfargo.com

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ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.

ONEOK is a FORTUNE 500 company and is included in the S&P 500.

Some of the statements contained in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to the closing, net proceeds, and expected use of proceeds of the offering. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.

Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "target," "will," "would" and other words and terms of similar meaning.

One should not place undue reliance on forward-looking statements.  Known and unknown risks, uncertainties and other factors, including, without limitation, prevailing market conditions and difficulties in executing the offering, may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices.  

Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in our other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov.  All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Forward-looking statements speak only as of the date on which such statements are made, and other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.

Analyst Contact:	Andrew Ziola
	918-588-7683
Media Contact:	Brad Borror
	918-588-7582

View original content:https://www.prnewswire.com/news-releases/oneok-announces-750-million-notes-offering-301679289.html

SOURCE ONEOK, Inc.

FAQ

What is the purpose of ONEOK's $750 million notes offering?

ONEOK intends to use the net proceeds from the offering to repay amounts outstanding under its commercial paper program and potentially other indebtedness.

What is the coupon rate for ONEOK's senior notes?

The coupon rate for ONEOK's senior notes offering is 6.10%.

When is the expected closing date for the ONEOK notes offering?

The expected closing date for the ONEOK notes offering is on or about Nov. 18, 2022.

How much are the net proceeds expected to be from ONEOK's notes offering?

The net proceeds from the offering are expected to be $742 million.

Who are the joint managers for the ONEOK notes offering?

The joint book-running managers for the offering include Barclays Capital, Mizuho Securities, TD Securities, Wells Fargo Securities, BofA Securities, Citigroup Global Markets, Deutsche Bank Securities, Goldman Sachs, and Truist Securities.