EQT prices tender offer for 6 1/8% notes due 2025 after cap raise

By William Gullotti

Buffalo, N.Y., June 8 – EQT Corp. announced the consideration payable for 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), according to a press release on Thursday.

According to an earlier press release on Thursday, EQT amended the initial offer to increase the maximum tender amount to $300 million from $250 million after receiving early tenders totaling $672,365,000 by the early deadline at 5 p.m. ET on June 7.

The company accepted $300 million of the early tendered notes with a 44.7% proration factor applied.

The early tender consideration is $1,003.32 per $1,000 principal amount, as based on the 1 3/8% U.S. Treasury note due Jan. 31, 2025 plus a spread of 115 basis points.

The total consideration includes the early tender premium of $30 per $1,000 principal amount, payable only to holders who tendered by the early deadline, which was also the withdrawal deadline.

As previously reported, noteholders will also receive accrued interest.

Payment for the accepted early tendered notes is still expected to occur 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.

As reported, 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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