QEP buys back $618.24 million of its notes in change-of-control tender

By Devika Patel

Knoxville, Tenn., Aug. 11 - QEP Resources, Inc. repurchased $618.24 million in notes as part of its change-of-control tender offers that launched on July 12, according to a company news release.

The offers expired at 5 p.m. ET on Aug. 6.

Specifically, the company repurchased $71.5 million of its 7½% senior notes due 2011, $73.16 million of its 6.05% senior notes due 2016, $311.35 million of its 6.8% senior notes due 2018 and $162.23 million of its 6.8% senior notes due 2020.

Following this, there remains $78.5 million of the 7½% notes, $176.84 million of the 6.05% notes, $138.65 million of the 6.8% notes due 2018 and $137.77 million of the 6.8% notes due 2020.

The offers were required under the change-of-control provisions of the notes following the spinoff on June 30 of the company by parent Questar Corp. and the subsequent downgrade of QEP Resources' senior unsecured debt to below investment grade by Moody's Investors Service and Standard & Poor's.

QEP used proceeds from its term loan and revolving credit facility to fund the purchases; the notes were bought back at either 100% or 101% of par, as applicable under the terms of each series of notes, plus accrued interest up to the payment date, which is expected to be Aug. 11.

QEP Resources is a natural gas and oil exploration and production company based in Denver.

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