EQT January debt sale helps to pay down $300 million under revolver

By Devika Patel

Knoxville, Tenn., March 16 – EQT Corp. paid down the $300 million balance on its revolving credit facility using the proceeds from a $1.75 billion January sale of fixed-rate senior notes, according to a press release.

On Jan. 15, EQT priced $1.75 billion of fixed-rate senior notes (Ba1/BBB-/BBB-) in two tranches.

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.

Proceeds were earmarked 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 were to 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.

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