ONE Gas Prices $1.2 Bln Notes Offering

(RTTNews) - ONEOK, Inc. (OKE) said Monday 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 percent; $300 million of 10-year senior notes at a coupon of 3.61 percent; and $600 million of 30-year senior notes at a coupon of 4.658 percent.

ONE Gas expects to receive net proceeds of about $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 about $1.13 billion as part of the announced 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.