TULSA, Okla. – ONEOK, Inc. (NYSE: OKE) is making a splash in the debt markets, announcing the pricing of a $3.0 billion senior notes offering, as confirmed earlier today. The energy infrastructure player, a key component of the S&P 500, is strategically maneuvering its financial portfolio with this move.
Here’s a breakdown of the offering:
- $750 million of 7-year senior notes with a coupon of 4.95%.
- $1.0 billion of 10-year senior notes boasting a 5.40% coupon.
- A hefty $1.25 billion tranche of 30-year senior notes, yielding a compelling 6.25%.
The company anticipates net proceeds of approximately $2.96 billion after accounting for underwriting discounts, commissions, and other offering expenses. So, where’s all this cash headed? ONEOK plans to retire its outstanding commercial paper and fully repay its senior notes due September 15, 2025, along with any accrued interest. Smart move. Any leftover funds will be channeled into general corporate purposes, potentially including further debt reduction through repurchase or redemption of existing notes. The deal is expected to close around August 12, 2025, pending the usual closing conditions.
Heavy hitters from the financial world are backing this offering. Mizuho Securities USA LLC, Deutsche Bank Securities Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, Truist Securities, Inc., CIBC World Markets Corp., MUFG Securities Americas Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers. This underscores the significant confidence institutional investors have in ONEOK’s financial health and growth prospects.
Adding to the syndicate, Barclays Capital Inc., Blaylock Van, LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Regions Securities LLC, Roberts & Ryan, Inc. and U.S. Bancorp Investments, Inc. are serving as co-managers.
This announcement is purely informational and isn’t an offer to sell, nor a solicitation to buy these securities. Any such actions would be unlawful in jurisdictions where such activities are prohibited. The notes are being offered under a previously filed and effective registration statement with the Securities and Exchange Commission (SEC).
ONEOK, listed on the NYSE as OKE, emphasizes that it provides vital energy products and services. The company is a major midstream operator with a sprawling 60,000-mile pipeline network, transporting natural gas, NGLs, refined products, and crude oil across North America and contributing significantly to both domestic and international energy markets.
ONEOK is headquartered in Tulsa, Oklahoma.
For more information: www.oneok.com.
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Forward-Looking Statements Note: This announcement features forward-looking statements, subject to risks and uncertainties detailed in ONEOK’s SEC filings. Actual results may differ materially from projections.
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SOURCE Oneok, Inc.
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