Kinetik’s $1 Billion Sustainability-Linked Senior Notes Offering

Latham & Watkins represented the initial purchasers in the transaction.

Kinetik Holdings Inc. (NASDAQ: KNTK) has announced that its subsidiary, Kinetik Holdings LP, has priced its previously announced offering of US$1 billion of 5.875% sustainability-linked senior notes due 2030. The interest rate on the notes is linked to Kinetik’s performance against sustainability performance targets related to greenhouse gas and methane emissions reduction targets and the representation of women in corporate officer positions.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., BofA Securities, Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, Blackstone Securities Partners L.P., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc. acted as initial purchasers for the offering.

Kinetik is the largest and fastest growing vertically integrated midstream services provider in the Delaware Basin. Kinetik is strategically located in the heart of the Delaware Basin in the Permian, one of the fastest growing areas for oil and gas development in the world. 

Latham & Watkins LLP represented the initial purchasers in the transaction with a deal team led by Houston partner Trevor Lavelle (Picture), with Houston associates Om Pandya, Ziyad Barghouthy, Jacob Weiner, Janhavi Das, and Brian Bruzzo. Advice was also provided on finance matters by Houston partner Pamela Kellet, with Houston associates Brian Flynn and Kirby Swartz; on tax matters by Houston partner Tim Fenn, with Houston associates Christine Mainguy and Dominick Constantino; and on environmental matters by Los Angeles counsel Josh Marnitz.

Involved fees earner: Ziyad Barghouthy – Latham & Watkins; Brian Bruzzo – Latham & Watkins; Dominick Constantino – Latham & Watkins; Janhavi Das – Latham & Watkins; Timothy Fenn – Latham & Watkins; Brian Flynn – Latham & Watkins; Pamela Kellet – Latham & Watkins; Trevor Lavelle – Latham & Watkins; Christine Mainguy – Latham & Watkins; Joshua Marnitz – Latham & Watkins; Om Pandya – Latham & Watkins; Kirby Swartz – Latham & Watkins; Jacob Weiner – Latham & Watkins;

Law Firms: Latham & Watkins;

Clients: Bank of America Securities; Barclays Capital ; Blackstone Securities Partners; Citigroup Global Markets Ltd; Credit Suisse Securities (USA) LLC; Goldman Sachs & Co.; J.P. Morgan Securities LLC; Mizuho Securities; Morgan Stanley; MUFG Securities Americas Inc. ; PNC Capital Markets LLC; RBC Capital Markets; TD Securities; Truist Securities Inc. ; Wells Fargo Securities;