EQT lifts tender cap for 6 1/8% notes due 2025 to $300 million

By Marisa Wong

Los Angeles, June 8 – EQT Corp. announced the early results and upsizing of its May 24 cash tender offer for up to a maximum amount of its $901,521,000 outstanding 6 1/8% senior notes due Feb. 1, 2025 (Cusip: 26884LAH2).

EQT has amended the offer to increase the maximum tender amount to $300 million from $250 million, according to a Thursday press release.

As of 5 p.m. ET on June 7, the early tender date, holders had tendered $672,365,000 of the notes.

The company will accept $300 million of the tendered notes at a proration factor of 44.7%.

Pricing for the tender offer will be based on the 1 3/8% U.S. Treasury note due Jan. 31, 2025 plus a spread of 115 basis points and will be set at 10 a.m. ET on June 8. If the early tender consideration is greater than $1,000 per $1,000 principal amount, then the early tender consideration will be based on an assumed maturity date of Jan. 1, 2025, which is the par call date.

The total consideration will include an early tender premium of $30 per $1,000 principal amount that will be paid only to holders who tender by the early deadline, which was also the withdrawal deadline.

Noteholders will also receive accrued interest.

Payment for the accepted early tendered notes is expected to be made on June 9.

Although the tender offer is set to expire at 11:59 p.m. ET on June 22, the company does not expect to accept for purchase any notes tendered after the early deadline, because holders have already tendered an aggregate amount above the offer cap.

The purpose of the tender offer is to reduce EQT’s principal amount of debt. Notes purchased are expected to be retired.

The company previously announced it also expects to redeem all of its outstanding 5.678% senior notes due 2025.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Scotia Capital (USA) Inc. (833 498-1660 or LM@scotiabank.com) are the lead dealer managers.

M&T Securities, Inc. and WauBank Securities LLC are the co-dealer managers.

Global Bondholder Services Corp. (212 430-3774, 855 654-2015 or contact@gbsc-usa.com) is the information agent and tender agent.

EQT is a Pittsburgh-based natural gas production company.

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