Equitrans Midstream to price $800 million two-part notes on Tuesday

By Paul A. Harris

Portland, Ore., May 31 – Equitrans Midstream Corp. plans to price an $800 million two-part offering of senior notes (expected ratings Ba3/BB-/BB) in a Tuesday drive-by following a conference call with investors, according to market sources.

The deal features $400 million of five-year notes with two years of call protection and $400 million of eight-year bullet notes.

Initial guidance has the notes in both tranches coming to yield in the low 8% area, a sellside source said.

BofA Securities Inc. is the left bookrunner for the Rule 144A and Regulation S for life deal. J.P. Morgan Securities LLC, MUFG, Barclays, Citigroup Global Markets Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, Truist Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.

RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. are the senior co-managers. First National is the co-manager.

The first call premium for the five-year notes will be set at par plus 50% of the coupon.

The eight-year notes feature a par call six months prior to maturity but are otherwise non-callable.

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

The Pittsburgh-based company, which manages midstream assets in the Appalachian Basin, plans to use the proceeds to fund tender offers for any and all of its 4¾% senior notes due 2023 and portions of 6% senior notes due 2025 and its 4% notes 2024.

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