Kinetik Holdings Secures $4.25B Refinancing Package  | Rigzone -

Kinetik Holdings Secures $4.25B Refinancing Package  | Rigzone

Kinetik Holdings has completed a comprehensive refinancing package consisting of a five-year $1.25 billion credit facility, a three-year $2 billion loan, and $1 billion 5.875% sustainability-linked senior notes due 2030.

Kinetik used the net proceeds from the Refinancing to repay and retire all existing consolidated debt facilities and will subsequently redeem its Series A Preferred in full by year-end 2022.

Its subsidiary, Kinetik Holdings, today has closed the previously announced offering of $1.0 billion sustainability-linked senior notes due 2030. The Senior Notes are fully and unconditionally guaranteed by Kinetik. The Senior Notes mature on June 15, 2030, pay interest at the rate of 5.875% per year, and are payable on June 15 and December 15 of each year. The first interest payment will be made on December 15, 2022.

The entire Refinancing is linked to Kinetik’s performance against sustainability performance targets related to greenhouse gas and methane emissions intensity reduction targets and the representation of women in corporate officer positions.

Finally, Kinetik’s Class A Common Stock started trading on NASDAQ on a stock split-adjusted basis on Thursday, June 9, 2022, per its recent two-for-one stock split announcement. The stock split was accomplished by distributing one additional share of Class A Common Stock for each share of Class A Common Stock outstanding and one additional share of Class C Common Stock for each share of Class C Common Stock outstanding. The additional shares were issued on Wednesday, June 8, 2022, to holders of record as of the close of business on Tuesday, May 31, 2022.

“We are excited to announce the completion of the comprehensive refinancing as we believe it materially improves and streamlines Kinetik’s capital structure with no asset level or structurally senior debt as well as solidifies our commitment to achieving Kinetik’s environmental and social sustainability performance targets,” said Jamie Welch, President & Chief Executive Officer. “Further, through the completion of the stock split, we are excited to enhance shareholder access to our stock and generally liquidity in the market.”

Kinetic said its news release does not constitute an offer to sell or a solicitation of an offer to buy any securities and nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction. The Offering was made only by utilizing an offering memorandum.

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