OGE Energy Corp.’s (OGE) midstream pipeline subsidiary, Enogex LLC, sold $250 million of 10-year senior notes with a coupon rate of 6.25%. The company intends to apply the net proceeds from the sale of the new notes for general corporate purposes, including repaying – at maturity – a portion of the $289.2 million outstanding aggregate principal amount of its 8.125% senior notes, which will mature on Jan 15, 2010. Enogex will temporarily use re-financed proceeds to repay borrowings under its credit facility, with any excess proceeds being temporarily invested.
OGE Energy ended the first nine months of fiscal 2009 with $1.9 billion of long-term debt from $2.2 billion at year-end fiscal 2008. On the liquidity front, the company had approximately $2.3 million of cash and cash equivalents, besides $825.9 million of net available liquidity under its revolving credit agreements.
OGE Energy planned capital expenditures of approximately $861 million, $617 million and $567 million in fiscals 2009, 2010 and 2010, respectively. To support this, the company expects to issue between $200 million and $250 million of long term debt in mid-2010. Of this a significant chunk is expected to be refinanced long term notes at cheaper rates.
OGE Energy is a public utility holding company. Its principal subsidiary is Oklahoma Gas and Electric Company, a regulated public utility engaged in the generation, transmission and distribution of electricity to retail and wholesale customers. Its other subsidiary is Enogex Inc. Enogex owns and operates natural gas transmission and gathering pipelines, has interests in several gas processing plants, markets electricity, natural gas and natural gas liquids and invests in the drilling for and production of crude oil and natural gas.
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