Kodiak Gas Services, Inc. (NYSE: KGS) has issued a private offering of $750 million in senior unsecured notes due 2031. The notes are being sold to qualified institutional buyers under Rule 144A and to non‑U.S. persons under Regulation S, and will be redeemed at 103.625 % of principal against the company’s existing 7.25 % senior notes due 2029.
The proceeds will also finance the acquisition of Distributed Power Solutions, LLC, a company valued at roughly $675 million. The deal will be paid for with $575 million in cash and the remainder in Kodiak shares, expanding Kodiak’s footprint into distributed power generation and diversifying its service portfolio beyond contract compression.
In 2025 Kodiak posted record revenue of $1.31 billion and adjusted EBITDA of $715 million, with contract‑services gross margin reaching 69.2 % and fleet utilization at 97.7 % in Q4 2025. For 2026 the company has guided revenue of $1.37–$1.43 billion and adjusted EBITDA of $750–$780 million, excluding the impact of the DPS acquisition. Kodiak’s total debt stands at $2.6 billion, a debt‑to‑equity ratio of 2.17, and a leverage target of 3.5×; it also has $1.5 billion available on its asset‑backed loan facility.
The refinancing of the 2029 notes extends Kodiak’s debt maturity profile and may reduce interest expense, while the DPS acquisition aligns with the company’s strategy to broaden its service offerings and capture growth in the distributed power market. Management highlighted the company’s record 2025 performance and strategic initiatives such as fleet high‑grading, divestiture of non‑core operations, and investment in AI and machine learning to drive operational efficiency.
No immediate market reaction data is available for this transaction.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.