Apollo to Repackage $9 Billion Oneok Stake Into Debt Deal

Corporate Action
โดย Bloomberg·US·Read original
Summary · why it matters

Apollo Global Management Inc. is turning its $9 billion stake in Oneok Inc. into investment-grade debt, part of a broader strategy of converting equity into debt-like securities. The deal, announced Sunday, treats Apollo's investment as permanent equity for Oneok, allowing the Tulsa-based energy company to raise capital without adding conventional debt or hurting its credit rating. Apollo aims to structure the securities so they can receive investment-grade ratings, with the capital subordinated to Oneok's existing debt and sliced into seniority levels. The firm has completed over $100 billion of such transactions, including with Intel, Vonovia, Anheuser-Busch InBev, Air France-KLM, and BP, and its pipeline tops $100 billion. The Oneok deal will help fund Oneok's $4.4 billion purchase of Brazos Midstream Holdings' natural gas operations in West Texas and repay debt, with Apollo's return capped at 7% for the first nine years, rising to 7.85% by year 15.

Impact on stocks 8

Aging Population▲ · 1 stocks
Apollo Global Management LLC Class A
APO
▲ PositiveCapitalrelevance

Apollo converts its $9B Oneok equity stake into investment-grade debt-like securities, advancing its equity-to-debt strategy with a $100B+ pipeline.

Energy▲ · 1 stocks
ONEOK Inc
OKE
▲ PositiveCapitalrelevance

Oneok raises capital via Apollo's structured deal to fund its $4.4B Brazos Midstream purchase and repay debt without adding conventional debt or hurting its credit rating.

Consumer Staples▲ · 1 stocks
Consumer Discretionary▲ · 1 stocks
Industrials▲ · 1 stocks
Energy Transition & Power Demand▲ · 1 stocks
Semiconductors▲ · 1 stocks
Real Estate▲ · 1 stocks

Off-coverage companies 1

Brazos Midstream HoldingsPrivate± Mixed
relevance

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