Published on 9/20/2022 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: EQT prices $1 billion of three-, 5.5-year senior notes
By Wendy Van Sickle
Columbus, Ohio, Sept. 20 – EQT Corp. priced $1 billion of senior notes (Ba1/BBB-/BBB-) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The deal included $500 million of three-year notes, which priced at par to yield 5.678% with a spread over Treasuries of 175 basis points.
The offering also included $500 million of 5.7% notes due April 1, 2028 that priced at 99.629 to yield 5.78%, or a spread over Treasuries of 205 bps.
Bookrunners are RBC Capital Markets LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
The Pittsburgh-based energy company plans to use the proceeds, together with cash on hand, borrowings under its revolving credit facility or borrowings under a term loan to fund the cash consideration for its acquisition of the Tug Hill and XcL Midstream oil and gas assets.
The notes offering is not contingent on completion of the acquisition. However, if the acquisition does not occur on or before June 30, 2023, EQT will be required to redeem the notes at 101.
| Issuer: | EQT Corp.
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| Amount: | $1 billion
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| Issue: | Senior notes
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| Bookrunners: | RBC Capital Markets LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Citizens Capital Markets Inc., M&T Securities, Inc. and WauBank
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| Mandatory redemption: | At 101 if consummation of acquisition of Tug Hill and XcL Midstream does not occur on or before June 30, 2023
|
| Trade date: | Sept. 20
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| Settlement date: | Oct. 4
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| Ratings: | Moody's: Ba1
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
|
|
|
| Three-year notes
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| Amount: | $500 million
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| Maturity: | Oct. 1, 2025
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| Coupon: | 5.678%
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| Price: | Par
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| Yield: | 5.678%
|
| Spread: | 175 bps
|
| Call option: | Make-whole call at any time prior to Oct. 4, 2023 at U.S. Treasuries plus 30 bps, then a par call
|
| Cusip: | 26884LAP4
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|
|
| 5.5-year notes
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| Amount: | $500 million
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| Maturity: | April 1, 2028
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| Coupon: | 5.7%
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| Price: | 99.629
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| Yield: | 5.78%
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| Spread: | 205 bps
|
| Call option: | Make-whole call at any time prior to March 1, 2028 at U.S. Treasuries plus 35 bps, then a par call
|
| Cusip: | 26884LAQ2
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