Summary
Kinder Morgan, Inc. (KMI) filed an 8-K report on December 1, 2014, detailing a significant debt issuance and the establishment of a cross-guarantee structure. KMI entered into an Underwriting Agreement to sell $6.25 billion in aggregate principal amount of Senior Notes across various maturities (2017, 2019, 2025, 2034, and 2045) with coupon rates ranging from 2.000% to 5.550%. This substantial capital raise was executed under a shelf registration statement. Furthermore, KMI and a significant portion of its wholly-owned subsidiaries entered into a Cross Guarantee Agreement. This agreement ensures that these subsidiaries are jointly and severally liable for the obligations related to the newly issued notes, effectively strengthening the credit profile of the debt offering by providing an additional layer of security for investors. This structure is particularly relevant in light of KMI's ongoing strategic transactions, including its proposed acquisitions of Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, LLC, and El Paso Pipeline Partners, L.P.
Key Highlights
- 1KMI successfully issued $6.25 billion in Senior Notes across five different maturities.
- 2The new debt includes notes maturing in 2017, 2019, 2025, 2034, and 2045.
- 3Coupon rates for the notes range from 2.000% to 5.550%, reflecting different risk and maturity profiles.
- 4The debt issuance was facilitated through an Underwriting Agreement with major financial institutions.
- 5A Cross Guarantee Agreement was executed, making KMI's wholly-owned subsidiaries jointly and severally liable for the new debt obligations.
- 6The debt offering and guarantee structure are expected to support KMI's broader corporate strategy, including pending acquisitions.
- 7The debt was registered under a Form S-3 shelf registration statement.