EQM tender for two notes oversubscribed at early date; cap raised to $500 million

By Wendy Van Sickle

Columbus, Ohio, June 13 – Equitrans Midstream Corp. announced the early results and upsizing of wholly owned subsidiary EQM Midstream Partners, LP’s tender offer for two series of notes in a news release Monday evening.

The company raised the cap to $500 million from $200 million for the tender offer for its $700 million outstanding 6% notes due 2025 (Cusips: 26885BAF7, U26886AA6) and its $500 million outstanding 4% notes due 2024 (Cusip: 26885BAA8).

The company said it took in tenders of $474,507,000 6% notes due 2025 and $320,419,000 4% notes due 2024 by the early deadline, 5 p.m. ET on June 13.

It expects to accept for purchase $300 million of the 6% notes due 2025 at a proration factor of 63.3% and $200 million of the 4% notes due 2024 at a proration factor of 62.6%.

As reported on on May 31, EQM is offering a total consideration of $1,030 per $1,000 principal amount of 6% notes due 2025 and par for the 4% notes due 2024.

The considerations include a $30 early tender premium that will only be paid to noteholders who tender their notes by the early deadline. Interest will be paid to the settlement date, which is expected to be June 14.

Because the offer was oversubscribed by the early deadline, the company does not expect to accept any notes tendered after the early deadline for purchase, although the offer does not officially expire until 11:59 p.m. ET on June 28.

The company announced the tender on May 31 concurrently with a tender offer for any and all of its $600 million outstanding 4¾% notes due 2023 (Cusip: 26885BAD2) under an any-and-all cash tender offer announced on May 31.The company took in tenders of $494,822,000 under the any-and-all offer, plus $5,454,000 principal amount of notes tendered under guaranteed delivery procedures of that offer, which expired at 5 p.m. ET on June 6, as previously reported.

BofA Securities, Inc. is the dealer manager (980 388-3646, 888 292-0070).

D.F. King & Co., Inc. is the information and tender agent for the offer (877 783-5524, eqm@dfking.com, www.dfking.com/eqm).

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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