Kodiak Gas Services, Inc. (NYSE: KGS) has announced the pricing of $1.2 billion in senior unsecured notes through its subsidiary, Kodiak Gas Services, LLC. The offering consists of $600 million in aggregate principal amount of 6.500% senior unsecured notes due 2033 and $600 million in aggregate principal amount of 6.750% senior unsecured notes due 2035.
The 2033 notes will mature on October 1, 2033, while the 2035 notes will mature on October 1, 2035. The offering is expected to close on September 5, 2025, subject to customary closing conditions. The notes will be issued at par and will be guaranteed on a senior unsecured basis by the company, its existing subsidiaries, and certain of its future U.S. subsidiaries that guarantee the issuer’s revolving asset-based loan credit facility.
The net proceeds from the offering will be used to repay a portion of the outstanding indebtedness under the ABL facility. In connection with this repayment, the company intends to enter into an amendment to the ABL facility that will, among other things, reduce total commitments to $2.0 billion and extend the maturity date.
It's important to note that the notes will not be registered under the securities act of 1933, as amended (the "Securities Act"), 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.
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 -0.5% to a price of $35.61. For the full picture, make sure to review Kodiak Gas Services's 8-K report.
