1. Kodiak announced a $170 million offering of senior unsecured notes. 2. The funds will help repay outstanding indebtedness under a loan facility. 3. Offering expected to close on September 22, 2025, pending conditions. 4. Additional notes are not registered under U.S. securities laws. 5. Kodiak is a key player in natural gas and oil transportation infrastructure.
The issuance of new notes to repay debt can improve KGS's financial position, potentially leading to an increase in stock value, similar to past instances where companies reduced their debt burden and saw positive stock performances. This move indicates strong financial management and could improve investor confidence.
The article addresses KGS's fundamental financial strategy and its planned debt reduction, which directly affects its stability and risk profile. Given the importance of managing debt in financial markets, this offering has a significant potential to influence KGS's price and investment attractiveness.
The immediate effect of debt repayment is expected to positively impact KGS's financial standing, thus influencing the stock price in the near term. Historical data shows that debt repayments typically lead to stock price increases within the next few months as investor confidence builds.
Kodiak Gas Services, Inc. (NYSE:KGS) ("Kodiak" or the "Company") today announced that its subsidiary, Kodiak Gas Services, LLC (the "Issuer"), priced its previously announced private offering (the "Offering") of an additional $170 million in aggregate principal amount of 6.500% senior unsecured notes due 2033 (the "Additional 2033 Notes") and an additional $30 million in aggregate principal amount of 6.750% of senior unsecured notes due 2035 (the "Additional 2035 Notes," and together with the "Additional 2033 Notes," the "Additional Notes"), being offered under the Company's indenture dated September 5, 2025. The Offering is expected to close on September 22, 2025, subject to customary closing conditions. The Issuer intends to use the net proceeds from the Offering to repay a portion of the outstanding indebtedness under the Company's revolving asset-based loan credit facility.
The Additional Notes will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or under any state or other securities laws and may not be offered or sold within the United States, or to or for the account or benefit of any U.S. person, absent registration or an applicable exemption from registration requirements. The Additional Notes are being offered only to persons who are either reasonably believed to be "qualified institutional buyers" under Rule 144A or who are non-"U.S. persons" under Regulation S as defined under applicable securities laws.
This press release does not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
About Kodiak
Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high-volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than statements of historical fact. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. They include statements regarding the closing of the Offering and the expected use of proceeds therefrom. Although Kodiak believes the expectations and forecasts reflected in the forward-looking statements are reasonable, Kodiak can give no assurance they will prove to have been correct. They can be affected by inaccurate or changed assumptions or by known or unknown risks and uncertainties. Important risks, assumptions and other important factors that could cause future results to differ materially from those expressed in the forward-looking statements are described under "Risk Factors" in Item 1A of Kodiak's annual report on Form 10-K for the year ended December 31, 2024 and any updates to those factors set forth in Kodiak's subsequent quarterly reports on Form 10-Q. Kodiak undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.
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Kodiak Gas Services, Inc.
Graham Sones, VP of Investor Relations
ir@kodiakgas.com
(936) 755-3259