EQT talks $350 million six-year convertible notes to yield 1.75%-2.25%, up 17.5%-22.5%

By Abigail W. Adams

Portland, Me., April 23 – EQT Corp. plans to price $350 million of six-year convertible notes after the market close on Thursday with price talk for a coupon of 1.75% to 2.25% and an initial conversion premium of 17.5% to 22.5%, according to a market source.

J.P. Morgan Securities LLC (lead left), Barclays and Credit Suisse Securities (USA) LLC are active bookrunners for the Rule 144A offering, which carries a greenshoe of $52.5 million.

BofA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are passive bookrunners.

The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole.

There is standard dividend and takeover protection.

In connection with the pricing of the notes, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread, to repay debt with near-term maturities and for general corporate purposes.

EQT is a Pittsburgh-based natural gas production company.

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