8-KOther EventsExhibits & Filings

KINDER MORGAN, INC. 8-K Report, Corporate Update (Jul 31, 2020)

Filed July 31, 2020For Securities:KMIEP-PC

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.

Frequently Asked Questions

Kinder Morgan, Inc. (KMI) intends to use the proceeds from this $1.25 billion senior notes offering for general corporate purposes, with a specific focus on refinancing upcoming debt maturities. This proactive approach helps manage the company's debt obligations and capital structure.

The offering includes $750 million of 2.000% Senior Notes due February 15, 2031, and $500 million of 3.250% Senior Notes due August 1, 2050. Interest on both series of notes accrues from August 5, 2020, and is payable semi-annually.

The notes are guaranteed under a Cross Guarantee Agreement. Additionally, under the Indenture, KMI's obligations under the notes may be accelerated if an event of default occurs, such as payment defaults, covenant breaches, or bankruptcy, making the entire principal amount immediately due and payable.

This offering is primarily aimed at refinancing upcoming debt maturities, suggesting KMI is actively managing its debt profile by replacing older or near-term obligations with new, longer-term debt. The specific impact on the overall debt structure will depend on which specific maturities are being refinanced.