Kodiak Gas Services announced that its subsidiary, Kodiak Gas Services, LLC, has priced a private offering of $1 billion in aggregate principal amount of 5.875% senior unsecured notes due 2031. The notes are scheduled to mature on April 1, 2031, and the transaction is expected to close on March 20, 2026, subject to customary closing conditions.
The notes will be issued at par and guaranteed on a senior unsecured basis by the company, its existing subsidiaries, and certain future U.S. subsidiaries that guarantee the issuer’s revolving asset-based loan credit facility.
Kodiak said the net proceeds from the offering will primarily be used to redeem all of the issuer’s outstanding 7.25% senior notes due 2029. The redemption price will equal 103.625% of the $750 million aggregate principal amount of those notes, plus any accrued and unpaid interest.
Any remaining proceeds will be used to reduce borrowings under the company’s revolving asset-based loan credit facility. Kodiak expects to draw on that facility to help fund its planned acquisition of Distributed Power Solutions, LLC, a transaction previously announced by the company.
The notes are being offered in a private placement and will not be registered under the Securities Act of 1933 or any state securities laws. As a result, the securities may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
Kodiak Gas Services is headquartered in The Woodlands, Texas, and provides contract compression services that support the production and transportation of natural gas and oil. The company’s equipment and services are used across gas gathering systems, processing facilities, gas lift applications, and natural gas transmission infrastructure.
