Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Investor Presentation (October 2015)
8 slides from Kinder Morgan's investor presentation, Oct 30, 2015
Slide 1: Mandatory Convertible Offering
INC. Mandatory Convertible Offering October 30, 2015
Slide 2: Forward-Looking Statements
INC. Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions o
Slide 3: Offering Summary
INC. Offering Summary Issuer Kinder Morgan, Inc. Depositary Shares representing a Securities Offered 1/20 interest in a share of Mandatory Convertible Preferred Stock Offering Size 32,000,000 Depositary Shares Overallotment Option 4,800,000 Depositary Shares Offering Price $49 per Depository Share (
Slide 4: Purpose of Offering
INC. Purpose of Offering Fund equity needs for expansion capital program — No additional equity funding expected until mid-2016 Lower expected long-term cost of capital than common equity — KMI will pay about 2.5% more in dividends for 3 years – a temporary cost – to ultimately issue up to 17.5%
Slide 5: Overview of Mandatory Convertibles
INC. Overview of Mandatory Convertibles Structure Overview A mandatory convertible is equity sold forward in 3 years, bound by a minimum price (typically closing price at issuance) and a maximum price (typically 15%-25% above issuance price) Issuer pays a premium over its common dividend yield d
Slide 6: Shares Delivered
INC. Understanding Mandatory Convertibles Raise ~$1,541 million of net proceeds today Pay a quarterly coupon for ~3 years Issue common equity at maturity(a) — Number of shares delivered at maturity depends on KMI’s price at the time of maturity — If KMI’s price at maturity is less than $27.56
Slide 7: Cost of Capital Comparison
INC. Cost of Capital Comparison(a) The table below compares the cost of the Mandatory Convertible Security with a Common Equity issuance Mandatory Convertible Preferred Stock: Initial price of $27.56/share; 9.75% dividend; conversion premium up to 17.5% Common Equity: Assumed to be issued at $27
Slide 8: INC.
INC. KINDER/MORGAN