Summary
Kinder Morgan, Inc. (KMI) announced on July 31, 2020, the closing of a public offering of $1.25 billion in senior notes. The offering was split between $750 million of 2.000% Senior Notes due 2031 and $500 million of 3.250% Senior Notes due 2050. KMI intends to use the net proceeds from this offering for general corporate purposes, which include refinancing upcoming debt maturities. This debt issuance is a strategic move to manage KMI's capital structure and liquidity. The company is proactively addressing its debt obligations, particularly by refinancing existing maturities. Investors should note the terms of the new notes, including their respective interest rates and maturity dates, as well as the cross guarantee agreement and the potential for acceleration of obligations in the event of default. The offering was conducted under a shelf registration statement, indicating KMI's ongoing access to capital markets.
Key Highlights
- 1KMI issued $1.25 billion in senior notes through an underwriting agreement.
- 2The offering consists of $750 million in 2.000% Senior Notes due 2031 and $500 million in 3.250% Senior Notes due 2050.
- 3Proceeds are earmarked for general corporate purposes, including refinancing upcoming debt maturities.
- 4The notes are guaranteed under a Cross Guarantee Agreement.
- 5The offering was made under a shelf registration statement on Form S-3.
- 6Interest payments for the 2031 notes are semi-annual on February 15 and August 15, starting February 15, 2021.
- 7Interest payments for the 2050 notes are semi-annual on February 1 and August 1, starting February 1, 2021.