Financing ·
ONEOK, Inc. entered into a contribution agreement with Apollo Global Management to receive a $9 billion minority…
OKEOneok Inc
ONEOK, Inc. entered into a contribution agreement with Apollo Global Management to receive a $9 billion minority equity investment in exchange for Class B Units, which carry a capped return and no voting rights. Concurrently, ONEOK agreed to acquire Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets for $4.425 billion. The transaction proceeds will fund the acquisition and extinguish approximately $5 billion of outstanding indebtedness, targeting a pro forma leverage ratio of 3.25x debt-to-EBITDA. ONEOK also commenced cash tender offers for up to $2 billion of senior notes as part of this deleveraging plan. The company operates in the midstream energy sector, providing gathering, processing, transportation, and storage services for natural gas, NGLs, and crude oil.