By Andrea Heisinger
New York, Jan. 23 - Oneok, Inc. priced $700 million of 4.25% 10-year senior notes on Monday to yield Treasuries plus 220 basis points, an informed source said.
The debt was sold in line with guidance in the 220 bps area.
The notes (Baa2/BBB/) were priced at 99.951 to yield 4.256%.
The securities have a make-whole call of Treasuries plus 35 bps until Nov. 1, 2021 and can be called after at par.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Senior co-managers were Barclays Capital Inc., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC, RBS Securities Inc., UBS Securities LLC and U.S. Bancorp Investments.
BOSC Inc. and RBC Capital Markets LLC were the junior co-managers.
Proceeds will be used to repay amounts under a $1.2 billion commercial paper program and for general corporate purposes, possibly including the purchase of common stock, the purchase of additional amounts of Oneok Partners shares and to pay dividends.
The diversified energy company is based in Tulsa, Okla.
| Issuer: | Oneok, Inc.
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Maturity: | Feb. 1, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Barclays Capital Inc., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC, RBS Securities Inc., UBS Securities LLC, U.S. Bancorp Investments
|
| Junior co-managers: | BOSC Inc., RBC Capital Markets LLC
|
| Coupon: | 4.25%
|
| Price: | 99.951
|
| Yield: | 4.256%
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until Nov. 1, 2021, after at par
|
| Trade date: | Jan. 23
|
| Settlement date: | Jan. 26
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 220 bps area
|
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