(Bloomberg) -- Oneok Inc. on Tuesday sold investment-grade bonds less than two weeks after the pipeline company said it was buying a competitor and a controlling stake in a different company in transactions valued at a combined $5.9 billion.
The US pipeline operator sold $7 billion of senior unsecured notes in six parts, according to a person familiar with the matter. The longest portion of the offering, a 40-year security, yields 1.9 percentage point above Treasuries after earlier discussions for 2.1 percentage points, the person said, asking not to be identified as the details are private. Oneok held calls with investors on Monday in the run-up to the deal.
Proceeds from the bond sale will be used to fund the purchase price for the EnLink Midstream LLC and Medallion Midstream transactions, said the person, with any remainder for general purposes. Oneok had said in late August it will acquire Global Infrastructure Partners’ entire interest in EnLink and also buy GIP’s equity interests in Medallion, the largest closely held crude gathering and transportation system in the Permian Basin.
A representative for Oneok didn’t reply to a request for comment.
The tranches maturing in three, five and seven years have what’s known as special mandatory redemption clauses, which allow Oneok to buy the debt back at 101 cents on the dollar in case the EnLink transaction doesn’t close.
Barclays Plc, Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. managed the bond sale, the person said.
--With assistance from Josyana Joshua.
(Updates pricing details, company comment line.)
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