Brief: Oneok To Acquire Medallion & Controlling Interest In Enlink From Global Infrastructure Partners In Transactions Valued At $5.9 Bln

EnLink Midstream LLC

29/08/2024 02:49

Aug 28 (Reuters) - ONEOK Inc  OKE.N :
    * ONEOK TO ACQUIRE MEDALLION AND CONTROLLING INTEREST IN
ENLINK
FROM GLOBAL INFRASTRUCTURE PARTNERS IN TRANSACTIONS VALUED AT
$5.9 BILLION
    * ONEOK INC - DELIVERS IMMEDIATE ACCRETION TO EPS AND FCF
    * ONEOK INC - GIP'S COMMON UNITS IN ENLINK ARE BEING
PURCHASED FOR
A TOTAL VALUE OF $3.0 BILLION, OR $14.90 PER UNIT
    * ONEOK INC - AS A RESULT OF TRANSACTION WITH GIP, ENLINK
WILL BE
A CONSOLIDATED SUBSIDIARY OF ONEOK
    * ONEOK - GIP'S ENTIRE INTEREST IN ENLINK MIDSTREAM, LLC
CONSISTING OF 43% OF ENLINK'S OUTSTANDING COMMON UNITS FOR
$14.90 PER UNIT
    * ONEOK INC - TOTAL CASH CONSIDERATION OF APPROXIMATELY $3.3
BILLION
    * ONEOK INC - ACQUIRE FROM GIP ALL OF EQUITY INTERESTS IN
MEDALLION MIDSTREAM LLC FOR $2.6 BILLION
    * ONEOK INC - INTENDS TO PURSUE ACQUISITION OF PUBLICLY HELD
COMMON UNITS OF ENLINK IN A TAX-FREE TRANSACTION
    * ONEOK INC - BELIEVES THESE, AND OTHER CONTEMPLATED
ACTIVITIES
WILL RESULT IN ANNUAL SYNERGIES OF APPROXIMATELY $250 MILLION TO
$450 MILLION WITHIN THREE YEARS
    * ONEOK - OBTAINED FINANCING COMMITMENTS FROM JPMORGAN CHASE
BANK,
N.A. & GOLDMAN SACHS BANK USA TO PROVIDE UP TO $6.0 BILLION TO
FUND AGGREGATE CASH CONSIDERATION
    * ONEOK INC - OBTAINED FINANCING COMMITMENTS FROM JPMORGAN
CHASE
BANK AND GOLDMAN SACHS BANK USA TO PROVIDE UP TO $6.0 BILLION TO
FUND TRANSACTION
    * ONEOK INC - UPON CLOSING OF ENLINK TRANSACTION, ONEOK WILL
HAVE
CONTROL OF ENLINK'S MANAGING MEMBER
    * ONEOK INC - UPON CLOSING OF ENLINK TRANSACTION, CO INTENDS
TO
REPLACE BOARD MEMBERS CURRENTLY DESIGNATED BY GIP WITH NEW BOARD
MEMBERS DESIGNATED BY ONEOK
    * ONEOK - $300 MILLION OF THE TOTAL $3.3 BILLION PURCHASE
PRICE
FOR THE ENLINK INTERESTS IS FOR GIP'S 100% INTEREST IN THE
MANAGING MEMBER OF ENLINK

Source text for Eikon:  ID:nPn5zxFtNa 
Further company coverage:  OKE.N 

 ((Reuters.Briefs@thomsonreuters.com;))