Kinetik Holdings Announces Pricing of $250 Million Sustainability-Linked Senior Notes Offering
Houston, Texas and Midland, Texas-based Kinetik Holdings Inc. (NYSE: KNTK) recently disclosed that its subsidiary, Kinetik Holdings LP, has successfully priced an offering of $250 million 6.625% sustainability-linked senior notes due 2028 (the “New Notes”). The announcement was made through a Business Wire press release.
Key Details of the Offering
The New Notes will mature on December 15, 2028, and will pay interest semi-annually at the rate of 6.625% per year. The notes will be issued at 101.25% of par, plus accrued and unpaid interest from December 15, 2024.
Impact on Kinetik Holdings
The offering is expected to provide Kinetik Holdings with additional financial resources to fund its business activities and support its growth strategies. The proceeds from the sale of the New Notes will be used to repay existing indebtedness and for general corporate purposes.
Sustainability-Linked Notes
It is important to note that the New Notes are sustainability-linked, which means that the interest rate on these notes will be adjusted if Kinetik fails to meet certain environmental, social, and governance (ESG) targets. This linkage aligns with the company’s commitment to sustainability and its ongoing efforts to reduce its carbon footprint.
Global Impact
The increasing popularity of sustainability-linked bonds and loans is a positive sign for the global effort to combat climate change and promote sustainable business practices. Kinetik’s issuance of these notes further demonstrates the growing recognition of the importance of ESG considerations in the financial sector.
Conclusion
Kinetik Holdings’ announcement of a $250 million sustainability-linked senior notes offering is a significant development in the company’s financial strategy and its commitment to sustainability. The proceeds from the sale of these notes will help fund Kinetik’s business activities and support its growth, while also providing an incentive for the company to meet ESG targets. The global market for sustainability-linked securities continues to grow, and Kinetik’s issuance is a positive sign for the future of sustainable finance.
- Kinetik Holdings Inc. announces $250 million sustainability-linked senior notes offering
- Proceeds to be used for repayment of existing debt and general corporate purposes
- Notes pay 6.625% interest semi-annually and mature in 2028
- Interest rate on notes may be adjusted based on ESG performance
- Global market for sustainability-linked securities continues to grow
