QEP gets early tenders for $311.4 million of 6.8% notes, 6 7/8% notes

By Susanna Moon

Chicago, Nov. 21 – QEP Resources, Inc. said investors had tendered $84.21 million of its $135,968,000 6.8% senior notes due 2020 and $227,187,000 of its $625 million 6 7/8% senior notes due 2021 as of 5 p.m. ET on Nov. 20.

QEP accepted for purchase all of the notes tendered by the early deadline with settlement planned for Tuesday, according to a company press release.

As announced Nov. 6, QEP will buy up to $361 million principal amount of the notes with the 6.8% notes given first priority and the 6 7/8% notes second priority.

The purchase price for each $1,000 principal amount will be $1,075 for the 6.8% notes and $1,085 for the 6 7/8% notes.

The company previously said the purchase price will include an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline.

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

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

Final settlement is expected to occur Dec. 6.

Notes tendered before the early deadline will take precedence over notes tendered subsequently, regardless of priority.

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.

The financing condition was expected to be met as of Tuesday.

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.

The company also previously said 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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