New Issue: Kinder Morgan prices $2.25 billion offering of notes due 2029, 2034

By Wendy Van Sickle

Columbus, Ohio, Jan. 29 – Kinder Morgan, Inc. priced a $2.25 billion two-tranche offering of senior notes (Baa2/BBB/BBB) on Monday, according to an FWP filed with the Securities and Exchange Commission.

The company sold $1.25 billion of 5% five-year notes at 99.834 to yield 5.038%, or a spread of 105 basis points over Treasuries.

A $1 billion tranche of 5.4% 10-year notes priced at 99.687 to yield 5.441%. The notes came at a spread of Treasuries plus 135 bps.

Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, including repaying commercial paper and to refinance debt maturities, including commercial paper borrowings incurred on Dec. 28 to finance the acquisition of STX Midstream.

As of Jan. 26, the company’s weighted average interest rate on its commercial paper borrowings was 5.614% and its outstanding borrowings were $1.913 billion.

Kinder Morgan is a Houston-based pipeline transportation and energy storage company.

Issuer:	Kinder Morgan, Inc.
Amount:	$2.25 billion
Issue:	Senior notes
Bookrunners:	Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
Co-managers:	Intesa Sanpaolo IMI Securities Corp. and Regions Securities LLC
Trustee:	U.S. Bank Trust Co., NA
Counsel to issuer:	Bracewell LLP
Counsel to underwriters:	Shearman & Sterling LLP
Trade date:	Jan. 29
Settlement date:	Feb. 1
Ratings:	Moody’s: Baa2
	S&P: BBB
	Fitch: BBB
Distribution:	SEC registered
Five-year notes
Amount:	$1.25 billion
Maturity:	Feb. 1, 2029
Coupon:	5%
Price:	99.834
Yield:	5.038%
Spread:	Treasuries plus 105 bps
Call features:	Make-whole call before Jan. 1, 2029 at greater of par or Treasuries plus 20 bps; thereafter at par
Cusip:	494553AD2
10-year notes
Amount:	$1 billion
Maturity:	Feb. 1, 2034
Coupon:	5.4%
Price:	99.687
Yield:	5.441%
Spread:	Treasuries plus 135 bps
Call features:	Make-whole call before Nov. 1, 2033 at greater of par or Treasuries plus 25 bps; thereafter at par
Cusip:	494553AE0

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