QEP starts tender for 6.8%, 6 7/8% notes, calls 6.8% notes due 2018

New York, Nov. 6 – QEP Resources, Inc. announced cash tender offers for its $135,968,000 of 6.8% senior notes due 2020 and its $625 million of 6 7/8% senior notes due 2021 and also said it will redeem its 6.8% notes due 2018 on Dec. 6, according to two press releases.

In the tender offer, QEP will buy up to $361 million principal amount of notes.

The 6.8% notes have first priority and the 6 7/8% notes second priority.

For the 6.8% notes, the purchase price will be $1,045.00 per $1,000 principal amount while the amount on offer for the 6 7/8% notes is $1,055.00 per $1,000 principal amount.

Both prices include an early tender premium of $30.00 per $1,000 principal amount that will only be paid to holders who tender by 5 p.m. ET on Nov. 20.

QEP will also pay accrued interest up to but excluding the settlement date.

The tender ends at 12 a.m. ET on Dec. 6.

Early settlement is planned for Nov. 21 and final settlement for Dec. 6.

Notes tendered before the early deadline will take precedence over notes tendered subsequently, regardless of priority. If the offer is oversubscribed by the early deadline, no notes that are tendered after that time will be accepted for purchase.

The tender is subject to conditions including the sale of at least $500 million of new notes. Proceeds from that offering will be used to fund the tender along with credit facility borrowings, if necessary.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760), Deutsche Bank Securities Inc. and MUFG Securities Americas Inc. are dealer managers.

D.F. King & Co., Inc. (212 269-5550, 800 370-1749 or qep@dfking.com) is tender agent and information agent.

QEP Resources also announced that its 6.8% notes due 2018 will be redeemed on Dec. 6 using the make-whole call provision. The redemption price will be calculated according to the make-whole formula.

QEP Resources is a Denver-based oil and natural gas exploration and production company focused on two regions, North Dakota and Utah, and Texas and Louisiana.

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