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THE WOODLANDS, Texas - Kodiak Gas Services, Inc. (NYSE:KGS), a company currently rated with "GOOD" financial health according to InvestingPro analysis, announced on Wednesday that its subsidiary, Kodiak Gas Services, LLC, has launched a private offering of an additional $200 million in 6.500% senior unsecured notes due 2033.
According to a press release statement, the company intends to use the net proceeds from the offering to repay a portion of the outstanding indebtedness under its revolving asset-based loan credit facility. The company maintains a debt-to-capital ratio of 0.48 and has demonstrated strong revenue growth of 31% over the last twelve months.
The additional notes are being offered as senior notes under the company’s indenture dated September 5, 2025. They will not be registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers under Rule 144A or non-U.S. persons under Regulation S.
Kodiak Gas Services is a contract compression services provider in the United States that serves oil and gas producers and midstream customers. The company operates in gas gathering systems, processing facilities, multi-well gas lift applications, and natural gas transmission systems. With a market capitalization of $2.86 billion and an attractive dividend yield of 5.46%, the company has caught the attention of analysts, with detailed insights available through InvestingPro’s comprehensive research reports.
The offering comes as part of the company’s ongoing financial management strategy. The transaction is subject to market conditions and other factors, as noted in the company’s statement. The company maintains a solid current ratio of 1.1, reflecting its ability to meet short-term obligations.
In other recent news, Kodiak Gas Services has been active with several financial developments. The company announced the pricing of a private offering of $1.2 billion in senior unsecured notes, divided into two tranches of $600 million each, due in 2033 and 2035. This move comes as Kodiak Gas Services also repurchased $50 million of its common stock from Frontier TopCo Partnership, L.P., an affiliate of EQT Infrastructure funds. Additionally, an affiliate of EQT announced an underwritten public offering of 10 million shares of Kodiak’s common stock, with Goldman Sachs serving as the sole underwriter. Notably, Kodiak will not receive any proceeds from this stock sale. Meanwhile, Stifel has reiterated its Buy rating on Kodiak Gas Services, maintaining a price target of $47. These recent activities highlight Kodiak’s ongoing financial strategies and market engagements.
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