Published on 1/15/2020 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: EQT sells $1.75 billion of senior notes in two parts better than talk
By Cristal Cody
Tupelo, Miss., Jan. 15 – EQT Corp. priced $1.75 billion of fixed-rate senior notes (Ba1/BBB-/BBB-) in two tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1 billion tranche of 6.125% five-year notes priced at par to yield a spread of Treasuries plus 452 basis points.
The notes due Feb. 1, 2025 were initially talked to price in the 6.25% area.
EQT sold $750 million of 7% notes due Feb. 1, 2030 at par to yield a Treasuries plus 521 bps spread.
Initial price talk was in the 7.125% area.
BofA Securities, Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
EQT held fixed income investor calls for the offering on Monday and Tuesday.
Proceeds will be used to repay or redeem all of the company’s outstanding floating-rate notes due 2020 and its 2.5% senior notes due 2020. Any remaining proceeds will be used to repay or redeem other outstanding debt, including all or a portion of EQT’s 4.875% senior notes due 2021.
The integrated energy company is based in Pittsburgh.
| Issuer: | EQT Corp.
|
| Amount: | $1.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Huntington Investment Co., BNY Mellon Capital Markets, LLC, CIBC World Markets Corp. and Citizens Capital Markets, Inc.
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 21
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 1, 2025
|
| Coupon: | 6.125%
|
| Price: | Par
|
| Yield: | 6.125%
|
| Spread: | Treasuries plus 452 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps before Jan. 1, 2025; thereafter at par
|
| Price guidance: | 6.25% area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 1, 2030
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | Treasuries plus 521 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps before Nov. 1, 2029; thereafter at par
|
| Price guidance: | 7.125% area
|
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