Equitrans Midstream offers to purchase two series of notes

By Taylor Fox

New York, Jan. 4 – Equitrans Midstream Corp. announced its wholly owned subsidiary, EQM Midstream Partners, LP, commenced tender offers to purchase up to $350 million of its $1.1 billion outstanding 4¾% notes due 2023 (Cusip: 26885BAD2) and $500 million outstanding 4% notes due 2024 (Cusip: 26885BAA8), according to a news release.

The notes will be accepted for purchase with priority given to the 4¾% notes.

Holders who tender notes prior to the 5 p.m. ET Jan. 15 early tender deadline will receive the total consideration of $1,072.50 per $1,000 of 4¾% notes tendered and $1,060 per $1,000 of 4% notes tendered, in each case plus interest. The total consideration for each series of notes also includes a $30.00 early tender premium per $1,000 of notes tendered.

The partnership’s obligation to accept for purchase, and to pay for, notes that are validly tendered and not validly withdrawn under each offer is conditioned on the satisfaction or waiver by the partnership of a number of conditions, including the receipt by the partnership of the net proceeds from one or more debt financing transactions.

All notes tendered by the early tender deadline will be given priority over those tendered after the early tender date, but before the expiration date.

If purchasing all the validly tendered and not validly withdrawn notes of a given acceptance priority level on the applicable settlement date would cause the aggregate maximum principal amount to be exceeded on such settlement date, the partnership will accept such notes on a pro rata basis, to the extent any notes of such acceptance priority level are accepted for purchase, so as to not exceed the aggregate maximum principal amount.

Tendered notes may be withdrawn up to 5 p.m. ET on Jan. 15.

The early settlement date is expected to be Jan. 20.

The offers will expire at 11:59 p.m. ET on Feb. 1.

The final settlement date is expected to be Feb. 3.

Barclays Capital Inc. (212 528-7581, 800 438-3242) is dealer manager, and D.F. King & Co., Inc. (866 751-6313, eqm@dfking.com) is the tender and information agent.

Equitrans is a provider of midstream services in the Appalachian Basin through its three primary assets: the gathering system, the transmission and storage system, and its water services assets.

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