Kodiak Gas Services Enters Material Agreement, New Financial Obligation

TL;DR

**Kodiak Gas Services just took on a new major financial obligation, watch for details.**

AI Summary

Kodiak Gas Services, Inc. filed an 8-K on January 23, 2024, reporting an event that occurred on January 22, 2024, concerning the entry into a material definitive agreement and the creation of a direct financial obligation. This filing indicates that the company has undertaken a significant new financial commitment, which could impact its future cash flow and debt levels. Investors should pay attention as new financial obligations can affect a company's profitability and its ability to return value to shareholders.

Why It Matters

This filing signals a new financial commitment for Kodiak Gas Services, Inc., which could influence its balance sheet and future earnings. Investors need to understand the nature and size of this obligation to assess the company's financial health and potential for growth.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specifying the amount or terms, creating uncertainty about its potential impact on the company's financial stability.

Analyst Insight

A smart investor would seek out the full details of the 'Material Definitive Agreement' and the 'Direct Financial Obligation' to understand their scope, terms, and potential impact on Kodiak Gas Services, Inc.'s financial statements before making any investment decisions.

Key Players & Entities

• Kodiak Gas Services, Inc. (company) — the registrant filing the 8-K
• January 22, 2024 (date) — date of the earliest event reported
• January 23, 2024 (date) — date the 8-K was filed
• 001-41732 (other) — Commission File Number
• KGS (other) — Trading symbol for Common Stock

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share KGS The New York Stock Ex
• $125 million — ity under the ABL Facility is less than $125 million for five consecutive business days or i

Filing Documents

• d733969d8k.htm (8-K) — 28KB
• d733969dex101.htm (EX-10.1) — 1056KB
• g733969g0123074412694.jpg (GRAPHIC) — 3KB
• 0001193125-24-012546.txt ( ) — 1468KB
• kgs-20240122.xsd (EX-101.SCH) — 3KB
• kgs-20240122_lab.xml (EX-101.LAB) — 18KB
• kgs-20240122_pre.xml (EX-101.PRE) — 11KB
• d733969d8k_htm.xml (XML) — 3KB

01

Item 1.01. Entry Into a Material Definitive Agreement. On January 22, 2024, Kodiak Gas Services, Inc. (the "Company"), its indirect, wholly owned subsidiary Kodiak Gas Services, LLC ("Kodiak Services" and, together with the Company, the "Borrowers") and certain other subsidiaries of the Company entered into the Third Amendment to Fourth Amended and Restated Credit Agreement (the "Third Amendment"), which amends the Fourth Amended and Restated Credit Agreement, dated as of March 22, 2023 (as amended by the First Amendment to Fourth Amended and Restated Credit Agreement dated as of May 31, 2023 and the Second Amendment to Fourth Amended and Restated Credit Agreement dated as of June 27, 2023, the "Existing ABL Credit Agreement" and as further amended by the Third Amendment, the "ABL Credit Agreement" and the revolving-asset backed loan credit facility governed by the ABL Credit Agreement, the "ABL Facility") by and among the Borrowers, certain subsidiaries of the Company, certain financial institutions as lenders and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the "Administrative Agent"). The Third Amendment, among other things, amended certain provisions of the Existing ABL Credit Agreement (i) to accommodate the consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of December 19, 2023, by and among the Borrowers, Kick Stock Merger Sub, LLC, Kick GP Merger Sub, LLC, Kick LP Merger Sub, LLC, CSI Compressco LP and CSI Compressco GP LLC (the "Merger Agreement") and (ii) to account for the Company's organizational structure after giving effect to the transactions contemplated by the Merger Agreement. In addition, the Third Amendment amended the Existing ABL Credit Agreement to (i) increase the maximum secured leverage ratio (calculated based on the ratio of Senior Secured Debt to EBITDA, each as defined in the ABL Credit Agreement), which will begin to be tested after we issue any unsecured indebtedn

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant The information required by Item 2.03 is included in Item 1.01 above and is incorporated into this Item 2.03 by reference. 1

01

Item 9.01. Exhibits. Exhibit No. Description 10.1 Third Amendment to Fourth Amended and Restated Credit Agreement, dated January 22, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DATED: January 23, 2024 Kodiak Gas Services, Inc. By: /s/ Kelly M. Battle Name: Kelly M. Battle Title: Executive Vice President, Chief Legal Officer, Chief Compliance Officer and Corporate Secretary 3

View Full Filing

View this 8-K filing on SEC EDGAR