ONE Gas Inc., a wholly-owned subsidiary of ONEOK Inc. (NYSE: OKE) priced an offering of $1.2 billion in senior notes, the company said Jan. 13. The offering has $300 million in five-year senior notes, $300 million in 10-year senior notes and $600 million in 30-year senior notes, the company said. These segments have coupons of 2.07, 3.61 and 4.658%, respectively, the company added.
ONE Gas expects to receive net proceeds of roughly $1.19 billion from the offering. This excludes deducted estimated discounts, commissions and offering expenses payable by ONE Gas, the company said.
The offering will fund a one-time cash payment to ONEOK of about $1.13 billion, the company said. This is part of the announced transfer of ONEOK’s natural gas distribution business to ONE Gas that is scheduled Jan. 27, 2014, the company added.
ONE Gas will hold the net proceeds’ remainder to support its financial flexibility, working capital requirements and capital expenditures, the company said.
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