Oneok Partners prices 5.3M units in public offering at $60.75, slight discount to Monday close

Oneok Partners prices stock offering

TULSA, Okla. — Natural gas producer and utility operator Oneok Partners LP on Tuesday priced a public offering of 5.25 million common units at $60.75 each.

That’s about a $2 discount to Monday’s closing price of $62.80.

Oneok Partners also granted the underwriters a 30-day option to purchase up to an additional 787,500 common units if demand exceeds initial supply. A subsidiary of Oneok Inc. will contribute about $6.5 million to maintain its 2 percent general partner interest.

The company expects to use the net proceeds to pay down debt on its $1 billion revolving credit facility and for general partnership purposes.

As a result of this public offering, Oneok Partners will have about 65.2 million common units and 36.5 million Class B units outstanding.

UBS Investment Bank, Bank of America Merrill Lynch, Citi, Morgan Stanley and Wells Fargo Securities are acting as joint book-running managers. Barclays Capital, Goldman Sachs & Co. and JPMorgan are acting as senior co-managers. Madison Williams and Co., Oppenheimer & Co., RBC Capital Markets and Stifel Nicolaus are acting as junior co-managers.

In afternoon trading, Oneok Partners shares slid $2.25, or 3.6 percent, to $60.55 in heavy trading. The stock offering will dilute current shareholders’ stakes in the company.