logo
Share SHARE
FONT-SIZE Plus   Neg

ONEOK Partners Announces 7.0 Mln Common Units Public Offering; Stock Down

ONEOK Partners, L.P (OKS) Monday announced a public offering of 7.0 million of its common units, representing limited partner interests, subject to market and other conditions.

In addition, the partnership will concurrently sell 7.0 million of its common units to ONEOK, Inc. (OKE) in a private placement. ONEOK, Inc. and a subsidiary, which is the sole general partner of the partnership, currently own an aggregate 42.8 percent interest in the partnership.

ONEOK Partners expects to use the net proceeds from the common unit public offering and private placement to repay amounts outstanding under its $1.2 billion commercial paper program, to repay amounts on the maturity of its $350 million 5.9 percent senior notes due April 2012, for capital expenditures and for other general partnership purposes.

Barclays Capital, BofA Merrill Lynch, Citigroup, Morgan Stanley, UBS Investment Bank and Wells Fargo Securities are acting as joint book-running managers in the public offering. Deutsche Bank Securities, Goldman, Sachs & Co., J.P. Morgan and RBC Capital Markets are acting as co-managers.

The partnership is expected to grant to the underwriters a 30-day option to purchase up to an additional 1,050,000 units to cover over-allotments, if any. The private placement of common units to ONEOK, Inc. will not be subject to an over-allotment option.

When the common unit public offering and private placement are complete, ONEOK Partners will have 217.8 million units outstanding, which includes 144.8 million common units and 73.0 million Class B units. ONEOK, Inc. and a subsidiary, which is the sole general partner of the partnership, will increase their aggregate ownership interest in the partnership to 43.3 percent from 42.8 percent, assuming the over-allotment option is not exercised.

OKS closed Monday's regular trade at $61.23, up $0.21 or 0.34%, on the NYSE. In the after-hours, the stock lost $2.17 or 3.54%. Over the past year, the stock traded in a range of $43.05 - $61.02.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items. In an unusual incident, an Airbus operated by Singapore Airlines temporarily lost power on both its Rolls Royce engines during a flight and plunged almost 13,000 feet or 3.96 kilometers. However, pilots managed to save the Airbus through standard operational procedures and it continued on its routine path. Hormel Foods has agreed to buy organic meat products maker Applegate Farms LLC for about $775 million, as consumers increasingly use natural and organic foods in their diet.
comments powered by Disqus
RELATED NEWS
Trade OKS now with 
Follow RTT