Kodiak Gas Services, Inc. (KGS) has released an update to notify the public and investors about an entry into a material definitive agreement.
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Kodiak Gas Services, LLC issued $750 million in 7.250% senior notes due in 2029, with interest payable semi-annually. The notes include provisions for special mandatory redemption if a merger agreement with CSI Compressco LP is not completed by 2025, and options for early redemption at specified prices. The indenture contains covenants limiting certain financial actions by the issuer and its subsidiaries, subject to exceptions, which may terminate if the notes achieve investment grade ratings. The indenture also outlines events of default and change of control provisions that could require the repurchase of notes at a premium.
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For a comprehensive understanding of the announcement, you can read the full document here.