Kodiak Gas Services, Inc. (NYSE: KGS) has announced the launch of a $1 billion senior unsecured notes offering through its subsidiary, Kodiak Gas Services, LLC. The offering consists of $500 million in aggregate principal amount of senior unsecured notes due 2033 and $500 million in aggregate principal amount of senior unsecured notes due 2035.
The net proceeds from the offering are intended to be used to repay a portion of the outstanding indebtedness under the issuer’s revolving asset-based loan credit facility (ABL facility). As part of this repayment, the company plans to enter into an amendment to the ABL facility that will reduce total commitments to $2.0 billion and extend the maturity date.
It is important to note that the notes will not be registered under the Securities Act of 1933, as amended, or under any state or other securities laws and may not be offered or sold within the United States, or to or for the account or benefit of any U.S. person, absent registration or an applicable exemption from registration requirements. The offering is being made to qualified institutional buyers under Rule 144A or non-U.S. persons under Regulation S as defined under applicable securities laws.
Kodiak Gas Services, Inc. is a leading contract compression services provider in the United States, headquartered in The Woodlands, Texas. The company provides contract compression and related services to oil and gas producers and midstream customers in high-volume gas gathering systems, processing facilities, multi-well gas lift applications, and natural gas transmission systems. Today the company's shares have moved -0.42% to a price of $35.79. For more information, read the company's full 8-K submission here.
