Kodiak Gas Services, Inc. has announced the launch of a $750 million senior unsecured notes offering through its subsidiary, Kodiak Gas Services, LLC. The company intends to use the net proceeds from the offering to redeem all of its outstanding 7.25% senior notes due 2029, as well as to fund the acquisition of 100% of the issued and outstanding membership interests of Distributed Power Solutions, LLC.
The notes being offered are due in 2031 and will not be registered under the Securities Act of 1933, as amended, or under any state or other securities laws. They are being offered only to qualified institutional buyers under Rule 144A or to 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, offering 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.
The company's subsidiary, Kodiak Gas Services, LLC, is planning to redeem the 2029 notes at a redemption price equal to 103.625% of the $750,000,000 aggregate principal amount, plus accrued and unpaid interest, if any. Additionally, the company expects to use amounts available under the ABL facility to fund the acquisition of Distributed Power Solutions, LLC.
This announcement comes as Kodiak Gas Services, Inc. continues to expand and optimize its financial structure, leveraging opportunities to strengthen its position in the market and support its strategic growth initiatives. Following these announcements, the company's shares moved 2.56%, and are now trading at a price of $37.73. Check out the company's full 8-K submission here.
