Kinetik driving by with $1 billion sustainability-linked notes; initial talk low-to-mid 6% area

By Paul A. Harris

Portland, Ore., June 1 – Kinetik Holdings LP plans to price a $1 billion offering of eight-year senior sustainability-linked notes (BB+/BB+) in a Wednesday drive-by trailing an investor conference call, according to market sources.

Initial guidance has the notes coming to yield in the low-to-mid 6% area.

Joint global coordinator J.P. Morgan Securities LLC will bill and deliver. Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Barclays are also joint global coordinators.

BofA Securities Inc., Mizuho Securities USA Inc., MUFG, PNC Capital Markets LLC, RBC Capital Markets LLC, TD Securities (USA) LLC, Truist Securities Inc. and Wells Fargo Securities LLC are active bookrunners.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc. are passive bookrunners.

The Rule 144A and Regulation S for life notes come with three years of call protection.

The Houston-based midstream company plans to use the proceeds plus a new three-year unsecured term loan to refinance all of its existing consolidated debt.

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