Alternative asset giant Apollo Global Management is investing $9 billion in pipeline operator ONEOK through a non-voting minority stake, structured to be eventually converted into investment-grade debt. The injection will fund ONEOK’s $4.425 billion acquisition of Brazos Midstream’s natural gas gathering and processing assets in the Permian Midland Basin, while enabling the repayment of approximately $5 billion of existing debt. The transaction, expected to close in September 2026, targets a leverage ratio of 3.25 times debt-to-EBITDA by 2027. In exchange for taking on this subordinated position, Apollo’s returns are capped at a 7% internal rate of return for the first nine years.
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