Brief: Kodiak Gas Services to Buy CSI Compressco in $854 Mln deal

CSI Compressco LP

19/12/2023 11:06

Dec 19 (Reuters) - CSI Compressco LP  CCLP.O :
    * KODIAK GAS SERVICES, INC. TO ACQUIRE CSI COMPRESSCO LP IN
AN
$854 MILLION ALL-EQUITY TRANSACTION
    * KODIAK GAS SERVICES INC: CSI COMPRESSCO UNITHOLDERS WILL
RECEIVE
0.086 SHARES OF KODIAK COMMON STOCK FOR EACH CSI COMPRESSCO
COMMON UNIT OWNED
    * KODIAK GAS SERVICES INC: PROPOSED DEAL FOR APPROXIMATELY
$1.65
PER UNIT
    * KODIAK GAS SERVICES INC- UPON CLOSING, CSI COMPRESSCO
UNITHOLDERS WILL OWN APPROXIMATELY 14% OF COMBINED COMPANY ON A
FULLY DILUTED BASIS
    * KODIAK GAS SERVICES INC - KODIAK SHAREHOLDERS WILL REALIZE
IMMEDIATE ACCRETION TO DISCRETIONARY CASH FLOW AND FREE CASH
FLOW PER SHARE UPON CLOSING
    * KODIAK GAS SERVICES INC- KODIAK EXPECTS TO LAUNCH A SENIOR
NOTES
OFFERING IN Q1 OF 2024
    * KODIAK GAS SERVICES INC- TRANSACTION HAS BEEN APPROVED BY
BOARD
OF DIRECTORS OF KODIAK AND BOARD OF DIRECTORS OF CSI COMPRESSCO
GP LLC
    * KODIAK GAS SERVICES INC - EXPECTED ANNUAL RUN-RATE COST
SYNERGIES OF AT LEAST $20 MILLION
    * KODIAK GAS SERVICES INC - CONTINUES TO EXPECT TO ACHIEVE
ITS
LONG-TERM LEVERAGE TARGET OF 3.0-3.5X BY YEAR END 2025

Source text for Eikon:  ID:nPn62XgXCa 
Further company coverage:  CCLP.O 

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