Kinder Morgan, Inc. (KMI, Financial) has entered into an underwriting agreement to issue $1.85 billion in senior notes, as disclosed in a recent Form 8-K filing with the Securities and Exchange Commission. The offering includes $1.1 billion of 5.150% Senior Notes due 2030 and $750 million of 5.850% Senior Notes due 2035. The proceeds from this issuance are earmarked for general corporate purposes, including the repayment of commercial paper borrowings and refinancing of upcoming debt maturities.
The notes are backed by a Cross Guarantee Agreement and will be issued under an Indenture dated March 1, 2012, with U.S. Bank Trust Company, National Association serving as trustee. Interest on these notes will be paid semi-annually, starting December 1, 2025, with the 2030 Notes maturing on June 1, 2030, and the 2035 Notes maturing on June 1, 2035. Kinder Morgan retains the option to redeem the notes at any time at specified redemption prices.
The underwriting agreement, which includes customary representations, warranties, indemnification, and contribution provisions, was executed with Barclays Capital Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., and J.P. Morgan Securities LLC as representatives of the underwriters. The notes were offered under a prospectus supplement and related prospectus filed with the SEC as part of a shelf registration statement on Form S-3.
This strategic financial maneuver is expected to bolster Kinder Morgan's financial flexibility, allowing the company to manage its debt profile effectively while continuing to focus on its core operations and growth initiatives.
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