This email is in response to your question posted on our website regarding our equity units listed as OKE-A. These are not convertible preferred stock. I have included a brief description of the equity units below, as well as a copy of the prospectus which discusses these units in more detail.
In January 2003, ONEOK issued 14 million equity units at a public offering price of $25 per unit. Each equity unit consists of a stock purchase contract for the purchase of shares of ONEOK�s common stock and, initially, a senior note due February 16, 2008. The senior notes will initially bear interest of 4.0% per year, payable quarterly. The senior notes will be remarketed as described in the prospectus supplement. Following a successful remarketing, the interest rates on the senior notes will be reset. We will also pay quarterly contract adjustment payments at a rate of 4.5% per year of the stated amount of $25 per Equity Unit, or $1.125 per year. Each stock purchase contract issued as part of the equity units carries a maximum conversion premium of up to 20 percent over the $17.19 closing price of ONEOK�s common stock on January 22, 2003.
Please feel free to contact me if you have any further questions. Thank you for your interest in ONEOK.
Rhonda Shiflet ONEOK, Inc. 100 W. 5th Street Tulsa, OK 74103 (918) 588-7137