Equitrans tender offer for 4¾% notes oversubscribed at early deadline

By Rebecca Melvin

New York, Jan. 19 – Equitrans Midstream Corp. announced its wholly owned subsidiary, EQM Midstream Partners, LP, obtained tenders of $754,693,000 of its 4¾% notes due 2023 (Cusip: 26885BAD2) as of 5 p.m. ET on Jan. 15, according to a news release.

The aggregate maximum principal amount of the notes series was fully subscribed as of the early tender deadline and will be subject to proration. No 4% notes due 2024 (Cusip: 26885BAA8) will be accepted for purchase.

The company initially expected to purchase up to $500 million of its $1.1 billion outstanding 4¾% notes and up to $500 million of the $500 million outstanding of 4% notes.

The partnership expects to accept for purchase in the offers an aggregate principal amount of $500 million of 2023 notes using a proration rate of about 66%. The partnership does not anticipate accepting for purchase any notes tendered after the early tender deadline.

The price for the 2023 notes is $1,042.50 plus an early tender premium of $30 for a total consideration of $1,072.50 per $1,000 principal amount of notes.

Settlement is expected to occur on Jan. 20.

The tender offer was announced on Jan. 4.

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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