Published on 1/30/2024 in the Prospect News High Yield Daily.
New Issue: Kodiak Gas prices $750 million five-year notes at par to yield 7¼%
By Paul A. Harris
Portland, Ore., Jan. 30 – Kodiak Gas Services, LLC priced a $750 million issue of five-year senior notes (B2/B+/BB) at par to yield 7¼% on Tuesday, according to a syndicate source.
The yield printed 12.5 basis points inside of yield talk in the 7½% area.
Bookrunners were Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities Inc. and Truist Securities Inc.
The Montgomery, Tex.-based supplier of natural gas compression services plans to use the proceeds to refinance debt as well as debt of CSI Compressco LP following Kodiak’s acquisition of CSI.
| Issuer: | Kodiak Gas Services, LLC
|
| Amount: | $750 million
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| Issue: | Senior notes
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| Maturity: | Feb. 15, 2029
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| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities Inc. and Truist Securities Inc.
|
| Co-managers: | Robert W. Baird & Co. Inc., Raymond James & Associates, RBC Capital Markets LLC, Stifel TPH, Comerica Securities Inc., Fifth Third Securities Inc., First Horizon, PNC Capital Markets LLC and Regions Securities LLC
|
| Coupon: | 7¼%
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| Price: | Par
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| Yield: | 7¼%
|
| Spread: | 322 bps
|
| First call: | Feb. 15, 2026 at 103.625
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| Trade date: | Jan. 30
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| Settlement date: | Feb. 2
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| Ratings: | Moody’s B2
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| S&P: B+
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| Fitch: BB
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7½% area
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