Equitrans Midstream pricing $1.75 billion two-part notes on Monday

By Paul A. Harris

Portland, Ore., Jan. 4 – Equitrans Midstream Corp. plans to price $1.75 billion of senior bullet notes (existing ratings Ba3/BB-/BB) in two tranches in a Monday drive-by following a mid-morning conference call with investors, according to market sources.

The Rule 144A and Regulation S for life deal includes eight-year notes with initial price talk in the high 4% area and 10-year notes with initial talk in the 5% area, according to a bond trader, who added that there is an expectation in the market that the issuer may bring to the transaction an additional tranche of 12-year notes.

Active bookrunner Barclays will bill and deliver. BofA Securities Inc. and J.P. Morgan Securities LLC are also active bookrunners.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC are the joint bookrunners.

SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. are the senior co-managers. Truist Securities Inc. and CIBC World Markets Corp. are the co-managers.

The issuing entity will be wholly owned subsidiary EQM Midstream Partners, LP.

The Canonsburg, Pa.-based midstream company plans to use the proceeds to repay its outstanding term loan A due 2022, to fund tender offers for its 4¾% notes due 2023 and 4% notes due 2024 and for general partnership purposes.

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