By Abigail W. Adams
Portland, Me., April 24 – EQT Corp. priced an upsized $440 million in six-year convertible notes after the market close on Thursday at par with a coupon of 1.75% and an initial conversion premium of 20%, according to a market source.
Pricing came at the rich end of talk for a coupon of 1.75% to 2.25% and at the midpoint of talk for 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 were active bookrunners for the Rule 144A offering, which carries a greenshoe of $60 million.
BofA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc. and Wells Fargo Securities LLC were passive bookrunners.
The initial size of the deal was $350 million with a greenshoe of $52.5 million.
The notes are non-callable until May 5, 2023 and then subject to a 130% hurdle with a make-whole.
The notes are putable upon a fundamental change. There is dividend protection.
In connection with the pricing of the notes, the company entered into capped call transactions with a cap price of $18.75, which represents a 50% premium over the last reported sales price of stock.
Net proceeds are expected to be $425.1 million or $483.2 million if the greenshoe is exercised in full.
Approximately $28.6 million of the proceeds will be used to cover the cost of the call spread with the remaining amount to repay debt with near-term maturities and for general corporate purposes.
EQT is a Pittsburgh-based natural gas production company.
Issuer: | EQT Corp.
|
Securities: | Convertible senior notes
|
Amount: | $440 million
|
Greenshoe: | $60 million
|
Maturity: | May 1, 2026
|
Bookrunners: | J.P. Morgan Securities LLC (lead left), Barclays, Credit Suisse Securities (USA) LLC, BofA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc. and Wells Fargo Securities LLC
|
Coupon: | 1.75%
|
Price: | Par
|
Yield: | 1.75%
|
Conversion premium: | 20%
|
Conversion price: | $15
|
Conversion rate: | 66.6667
|
Call options: | Non-callable until May 5, 2023 then subject to a 130% hurdle
|
Put options: | Upon a fundamental change
|
Pricing date: | April 23
|
Settlement date: | April 28
|
Distribution: | Rule 144A
|
Talk: | Coupon of 1.75% to 2.25% and initial conversion premium of 17.5% to 22.5%
|
Stock symbol: | NYSE: EQT
|
Stock price: | $12.50 at market close April 23
|
Market capitalization: | $3.19 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.