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EQT greenshoe increases six-year convertible notes to $500 million
By Sarah Lizee
Olympia, Wash., April 29 – Initial purchasers of EQT Corp.’s six-year convertible notes exercised their $60 million greenshoe in full, bringing the total deal size to $500 million, according to an 8-K filing with the Securities and Exchange Commission.
As previously reported, the company priced an upsized $440 million of the convertibles after the market close on April 23 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%.
J.P. Morgan Securities LLC (lead left), Barclays and Credit Suisse Securities (USA) LLC were active bookrunners for the Rule 144A offering.
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 the stock.
About $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.
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