New Issue: Kinetik prices upsized $300 million tap of 6 5/8% sustainability-linked notes at 100.5

By Paul A. Harris

Portland, Ore., Dec. 15 – Kinetik Holdings LP priced an upsized $300 million add-on to its 6 5/8% senior sustainability-linked notes due Dec. 15, 2028 (Ba1/BB+/BB+) in a Friday drive-by, according to market sources.

The add-on size increased from $200 million.

The price came at the rich end of the 100.25 to 100.5 price talk. Early guidance was in the 100.25 area.

Wells Fargo Securities, LLC, BofA Securities, Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities, Inc. worked as global coordinators on the deal.

The Midland, Tex.-based midstream energy company plans to use the proceeds to pay down term loan debt.

Issuer:	Kinetik Holdings LP
Amount:	$300 million
Security description:	Senior sustainability-linked notes
Global coordinators:	Wells Fargo Securities, LLC, BofA Securities, Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, Truist Securities, Inc.
Coupon:	6 5/8%
Price:	100.5
Yield:	6.479%
Spread:	Treasuries plus 247 bps
First call:	Dec. 15, 2025 at 103.313
Trade date:	Dec. 15
Settlement date:	Dec. 19
Ratings:	Moody’s: Ba1
	S&P: BB+
	Fitch: BB+
Distribution:	Rule 144A and Regulation S for life
Price talk:	100.25 to 100.5
Marketing:	Drive-by
Original issue:	$500 million priced on Dec. 4, 2023
Total issue size:	$800 million
Fungibility:	Rule 144A add-on notes to become immediately fungible with original notes, Regulation S add-on to become fungible with original notes following 40-day cooling period

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.