New York, United States, 1 September 2026 – Apollo Global Management is preparing to transform a US$9 billion minority stake in Oneok into a layered financing package designed to attract investment-grade buyers while preserving equity treatment for the pipeline operator. The structure places the investment in Oneok Holdings beneath Oneok's existing senior obligations and divides the exposure into tranches with different seniority. Parts are expected to be placed with Athene, third-party insurers and funds managed for Apollo clients. Oneok can treat the capital as permanent equity, avoiding the leverage and ratings pressure associated with conventional borrowing.
The capital supports Oneok's US$4.4 billion acquisition of Brazos Midstream Holdings' West Texas gas assets and debt repayment. Returns are capped at 7% for the first nine years and rise gradually to 7.85% by year 15. Apollo says it has completed more than US$100 billion of comparable transactions and sees a pipeline exceeding US$100 billion. The immediate market response should be interpreted in the context of structured finance and energy infrastructure. Headline figures provide direction, but the durability of the change will depend on implementation, counterparties and the broader cost of capital.
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