Kodiak Gas Services, Inc. (NYSE: KGS) has announced the pricing of additional senior unsecured notes in a private offering. The subsidiary, Kodiak Gas Services, LLC, priced an additional $170 million in aggregate principal amount of 6.500% senior unsecured notes due 2033 and an additional $30 million in aggregate principal amount of 6.750% senior unsecured notes due 2035. These additional notes are being offered under the company’s indenture dated September 5, 2025, and the offering is expected to close on September 22, 2025.
The net proceeds from this offering will be used to repay a portion of the outstanding indebtedness under the company’s revolving asset-based loan credit facility. It's important to note that the additional 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.
Kodiak Gas Services, headquartered in The Woodlands, Texas, is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil.
The press release did not include information about how these new notes compare to the previous offering or the company's financial performance, aside from the intended use of the net proceeds from the offering. The market has reacted to these announcements by moving the company's shares 2.87% to a price of $33.935. Check out the company's full 8-K submission here.
