ONEOK Announces Settlement of Equity Units With Common Stock
February 16 2006 - 8:00AM
PR Newswire (US)
TULSA, Okla., Feb. 16 /PRNewswire-FirstCall/ -- ONEOK, Inc.
(NYSE:OKE) announced that its 16.1 million equity units
(NYSE:OKENYSE:PrNYSE:A) will be settled today. The settlement will
consist of the holders of the equity units purchasing and ONEOK
issuing approximately 19.5 million shares of ONEOK common stock. As
a result, the equity units were suspended from trading before the
opening of business today. Upon the settlement, the company will
receive approximately $402 million in cash, which will be used to
reduce short-term debt. Total outstanding shares will be 117.2
million. The equity units were issued in January 2003 and consisted
of approximately $402 million 4.0 percent senior notes due 2008 and
an equity purchase contract, bearing a 4.5 percent quarterly
contract adjustment payment, obligating holders to purchase ONEOK
common stock on Feb. 16, 2006. Holders of the equity units will
receive 1.2119 shares of ONEOK common stock for each equity unit
they own; the last quarterly contract adjustment payment of 4.5
percent; and the last quarterly coupon payment of 4.0 percent on
the original notes. As required, ONEOK successfully remarketed the
senior notes in November 2005, resulting in approximately $402
million 5.51 percent senior notes due Feb. 16, 2008. The equity
unit holders' purchase obligation will be satisfied from the
proceeds received from that remarketing. The equity unit holders
will not be required to make any additional cash payments in
connection with the settlement. ONEOK, Inc. (NYSE:OKE) is a
diversified energy company. We are among the largest natural gas
distributors in the United States, serving more than 2 million
customers in Oklahoma, Kansas and Texas. We are a leader in the
gathering, processing, storage and transportation of natural gas in
the mid- continent region of the U.S. and own one of the nation's
premier natural gas liquids (NGL) systems, connecting much of the
NGL supply in the mid-continent with two key market centers. Our
energy services operation focuses primarily on marketing natural
gas and related services throughout the U.S. ONEOK is the majority
general partner of Northern Border Partners, L.P. (NYSE:NBP), one
of the largest publicly-traded limited partnerships. ONEOK is a
Fortune 500 company. For information about ONEOK, Inc. visit the
Web site: http://www.oneok.com/ . Analyst Contact: Dan Harrison
918-588-7950 Media Contact: Megan Whalen 918-588-7572 DATASOURCE:
ONEOK, Inc. CONTACT: analysts, Dan Harrison, +1-918-588-7950, or
media, Megan Whalen, +1-918-588-7572, both of ONEOK, Inc. Web site:
http://www.oneok.com/
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