Kinetik Holdings Secures $4.25 Billion Refinancing Program | Rigzone

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Kinetik Holdings has completed a comprehensive refinancing program including a $1.25 billion five-year credit facility, a $2 billion three-year loan and $1 billion sustainability-linked senior notes at 5.875% maturing in 2030.

Kinetik used the net proceeds from the refinancing to repay and withdraw all existing consolidated credit facilities and will subsequently redeem its preferred Series A in full by the end of 2022.

Its subsidiary, Kinetik Holdings, today 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, bear interest at the rate of 5.875% per annum and are payable on June 15 and December 15 of each year. The first interest payment will be made on December 15, 2022.

100% of the Refinancing is tied to Kinetik’s performance against sustainability performance targets related to greenhouse gas and methane emissions intensity reduction targets and the representation of women in management positions.

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

“We are pleased to announce the completion of the full refinancing, as we believe it significantly improves and streamlines Kinetik’s capital structure with no structurally senior asset levels or debt, and reinforces our commitment to achieving Kinetik’s environmental and social sustainability performance goals,” said Jamie. Welch, President and CEO. “Furthermore, with the completion of the stock split, we are excited to improve shareholder access to our shares and, in general, market liquidity.”

Kinetic has stated that its press release does not constitute an offer to sell or a solicitation of an offer to buy any securities and that there will be no sale of any securities in any state or jurisdiction in which such offer , solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or territory. The Offer has been made only by means of an offering memorandum.

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