Published on 6/1/2022 in the Prospect News Green Finance Daily and Prospect News High Yield Daily.
New Issue: Kinetik sells $1 billion 5 7/8% eight-year sustainability-linked notes at 99.588
By Paul A. Harris
Portland, Ore., June 1 – Kinetik Holdings LP priced a $1 billion issue of 5 7/8% eight-year senior sustainability-linked notes (Ba1/BB+/BB+) at 99.588 to yield 5.94% in a Wednesday drive-by, according to market sources.
The yield printed tighter than the 6% to 6¼% yield talk. Initial guidance was in the low-to-mid 6% area.
The orders were heard to be 2.5-times deal size early Wednesday afternoon, a sellside source said.
Joint global coordinator J.P. Morgan Securities LLC will bill and deliver. Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Barclays were also joint global coordinators. Active bookrunners were 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. Passive bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc.
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.
| Issuer: | Kinetik Holdings LP
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| Amount: | $1 billion
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| Issue: | Sustainability-linked senior notes
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| Maturity: | June 15, 2030
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| Joint global coordinators: | J.P. Morgan Securities LLC (bill and deliver), Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Barclays
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| Active bookrunners: | 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
|
| Passive bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc.
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| Coupon: | 5 7/8%
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| Price: | 99.588
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| Yield: | 5.94%
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| Spread: | 300 bps
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| Call protection: | Three years
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| Trade date: | June 1
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| Settlement date: | June 8
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| Ratings: | Moody's: Ba1
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| S&P: BB+
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 6% to 6¼%
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