ONE Gas prices $1.2 billion notes offering

ONEOK Inc.

ONEOK Inc. (NYSE: OKE) reports that its wholly owned subsidiary, ONE Gas Inc., has priced an offering to sell $1.2 billion of senior notes, consisting of $300 million of five-year senior notes at a coupon of 2.07%; $300 million of 10-year senior notes at a coupon of 3.61%; and $600 million of 30-year senior notes at a coupon of 4.658%.

ONE Gas expects to receive net proceeds of $1.19 billion from the offering, after deducting estimated discounts, commissions and offering expenses payable by ONE Gas. The net proceeds from the offering will fund a one-time cash payment to ONEOK of $1.13 billion as part of the transfer of ONEOK's natural gas distribution business to ONE Gas that is expected to occur on Jan. 27. 

The remaining portion of the net proceeds will be retained by ONE Gas in order to provide sufficient financial flexibility and to support working capital requirements and capital expenditures. 

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