Following its announcement yesterday of a 10-million-common-unit public offering, ONEOK Partners (NYSE: OKS) has priced the units at $49.61, the company said today. ONEOK Partners may also sell an additional 1.5 million units to the underwriters of the offering within 30 days to cover potential over-allotments.
To maintain its 2% general partner status, ONEOK (NYSE: OKE) will contribute $10.5 million to the offering. Upon successful completion of the common unit sale, ONEOK Partners will have 230.1 million units outstanding, of which 73 million are class B units, according to the company.
The aggregate ownership stake by ONEOK and a subsidiary in the partnership after the common unit offering will equal an estimated 41.5%, compared to 43.3% prior to the unit sale. The aggregate ownership percentage assumes the underwriters do not exercise their rights for the additional 1.5 million units.
The company's press release states that net proceeds from the offering will be used for "general partnership purposes and to repay amounts outstanding under its $1.2 billion commercial paper program."
ONEOK Partners' Aug. 6 closing price was $51.46.