By Abigail W. Adams
Portland, Me., Dec. 4 – Kinetik Holdings LP priced $500 million of five-year sustainability-linked notes (Ba1/BB+/BB+) at par to yield 6 5/8% in a Monday drive-by, according to a market source.
Pricing came toward the rich end of talk for a yield in the 6¾% area.
Early guidance was for a yield in the high 6% area, according to market sources.
The notes are non-callable for two years.
Wells Fargo Securities LLC (lead left), BofA Securities Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities Inc. are global coordinators and joint bookrunners for the Rule 144A and Regulation S for life offering.
Mizuho Securities USA Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Citigroup Global Markets Inc are also active bookrunners.
Passive bookrunners were RBC Capital Markets LLC, Barclays, SMBC Nikko Securities America Inc., Capital One Securities Inc., U.S. Bancorp Investments Inc., Goldman Sachs & Co. LLC and ING Financial Markets LLC.
Proceeds, together with cash on hand, will be used to repay borrowings under the company’s revolving credit facility and repay a portion of borrowings under its term loan credit facility.
Kinetik is a Midland, Tex.-based midstream energy company in the Permian Basin that provides comprehensive gathering, transportation, compression, processing and treating services.
| Issuer: | Kinetik Holdings LP
|
| Amount: | $500 million
|
| Issue: | Sustainability-linked senior notes
|
| Maturity: | Dec. 15, 2028
|
| Global coordinators: | Wells Fargo Securities LLC, BofA Securities Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities Inc.
|
| Joint active bookrunners: | Mizuho Securities USA Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Citigroup Global Markets Inc
|
| Passive bookrunners: | RBC Capital Markets LLC, Barclays, SMBC Nikko Securities America Inc., Capital One Securities Inc., U.S. Bancorp Investments Inc., Goldman Sachs & Co. LLC and ING Financial Markets LLC
|
| Coupon: | 6 5/8%
|
| Price: | Par
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| Yield: | 6 5/8%
|
| Spread: | 241 bps
|
| First call: | Two years
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| Trade date: | Dec. 4
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| Settlement date: | Dec. 6
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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
|
| Price talk: | 6¾% area
|
| Marketing: | Drive-by
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