Kinetik Holdings Inc. (NYSE: KNTK) has announced a private placement of $250 million aggregate principal amount of 6.625% sustainability-linked senior notes due 2028. This offering is being made pursuant to Rule 144A and Regulation S under the Securities Act of 1933.
The new notes are being offered as additional notes under the indenture dated as of December 6, 2023, pursuant to which the issuer has previously issued $800 million aggregate principal amount of 6.625% sustainability-linked senior notes due 2028. The new notes will have substantially identical terms, other than the issue date and the issue price, as the existing notes, and will vote together as a single class.
Kinetik intends to use the net proceeds from this offering for general corporate purposes, including the repayment of a portion of the borrowings outstanding under its revolving credit facility and to pay related fees and expenses.
The interest rate on the 2028 notes is linked to Kinetik’s performance against certain targets, as set forth in the sustainability-linked financing framework published by Kinetik on May 16, 2022. Kinetik obtained a second party opinion (SPO) on the framework from ISS ESG.
The new notes have not been and will not be registered under the Securities Act or the securities laws of any state and may only be offered to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S.
Kinetik Holdings Inc. is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. The company provides comprehensive gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The market has reacted to these announcements by moving the company's shares -0.7% to a price of $53.95. Check out the company's full 8-K submission here.
