Offering upsized and final order book >5x oversubscribed, anchored by blue-chip investors
Notes will be used to repay a portion of outstanding revolver borrowings and support the buildout of an integrated US natural gas champion
Kimmeridge Texas Gas ("KTG" or the "Company"), a producer of natural gas backed by Kimmeridge, announced it successfully priced its inaugural $500 million Senior Unsecured Notes Offering at 8.50%. The net proceeds will be used to repay a portion of the Company's outstanding revolver borrowings and to further ongoing initiatives as the Company seeks to deliver natural gas from wellhead to water on a net-zero basis.
Given the strength of KTG's financial and operational profile, the company was able to capitalize on a favorable shift in natural gas prices to become the first issuer in the 2025 high-yield market. Following meetings with more than 30 high-yield investors, the final order book was oversubscribed and broadly allocated to a blue-chip investor base.
Bryan Gunderson, Chief Financial Officer of KTG, said, "This inaugural bond offering reflects the strength of our differentiated platform, and the confidence investors have in our future. The financing, secured on favorable terms, will help accelerate our growth trajectory, including our highly compelling offtake agreement with Commonwealth LNG."
Bank of America served as lead book-running manager for the offering.
