New Issue: EQT sells $3 billion of fixed- and floating-rate notes in four parts

By Cristal Cody

Tupelo, Miss., Sept. 27 – EQT Corp. sold $3 billion of notes (Baa3/BBB/BBB-) in four tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The company priced $500 million of three-year floating-rate notes at par to yield Libor plus 77 basis points.

EQT sold $500 million of 2.5% three-year fixed-rate senior notes at 99.992 to yield 2.503%, or a spread of Treasuries plus 90 bps.

The company placed $750 million of 3% five-year senior notes at 99.738 to yield 3.057% and a Treasuries plus 115 bps spread.

In the final tranche, EQT sold $1.25 billion of 3.9% 10-year notes at 99.918 to yield 3.91%. The notes priced with a spread of 160 bps over Treasuries.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG, PNC Capital Markets, LLC and RBC Capital Markets, LLC were the bookrunners.

Proceeds will be used with cash on hand and borrowings under EQT's revolving credit facility for the cash consideration required for the company’s planned merger with Rice Energy Inc. If the merger is not completed by May 19, 2018, EQT is required to redeem all of the notes, except the five-year tranche.

The integrated energy company is based in Pittsburgh.

Issuer:	EQT Corp.
Amount:	$3 billion
Description:	Floating-rate notes and fixed-rate senior notes
Bookrunners:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG, PNC Capital Markets, LLC and RBC Capital Markets, LLC
Senior co-managers:	BNP Paribas Securities Corp., Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.
Co-managers:	BNY Mellon Capital Markets, LLC, CIBC World Markets Corp. and Huntington Investment Co.
Trade date:	Sept. 27
Settlement date:	Oct. 4
Ratings:	Moody’s: Baa3
	S&P: BBB
	Fitch: BBB-
Distribution:	SEC registered
Three-year floaters
Amount:	$500 million
Maturity:	Oct. 1, 2020
Coupon:	Libor plus 77 bps
Price:	Par
Yield:	Libor plus 77 bps
Call features:	Special mandatory redemption at 101% if Rice Energy Inc. merger not completed; optional call on first business day after one year following issuance at price equal to principal plus accrued but unpaid interest
Three-year notes
Amount:	$500 million
Maturity:	Oct. 1, 2020
Coupon:	2.5%
Price:	99.992
Yield:	2.503%
Spread:	Treasuries plus 90 bps
Call features:	Special mandatory redemption at 101% if Rice merger not completed; make-whole call before Sept. 1, 2020 at Treasuries plus 15 bps; thereafter at par
Five-year notes
Amount:	$750 million
Maturity:	Oct. 1, 2022
Coupon:	3%
Price:	99.738
Yield:	3.057%
Spread:	Treasuries plus 115 bps
Call features:	Make-whole call at Treasuries plus 20 bps before Sept. 1, 2022; thereafter at par
10-year notes
Amount:	$1.25 billion
Maturity:	Oct. 1, 2027
Coupon:	3.9%
Price:	99.918
Yield:	3.91%
Spread:	Treasuries plus 160 bps
Call features:	Special mandatory redemption at 101% if Rice merger not completed; make-whole call before July 1, 2027 at Treasuries plus 25 bps; thereafter at par

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