EQT Corporation Prices $1 Billion Private Offering of Senior Notes

Strategic Insights -

EQT Corporation, a leading independent natural gas production company, has successfully priced a private offering of $500 million in aggregate principal amount of its 3.125% senior notes due 2026 and $500 million in aggregate principal amount of its 3.625% senior notes due 2031. The offering, which is expected to close on May 17, 2021, subject to customary closing conditions, marks a significant milestone for the company as it seeks to fund its previously announced acquisition of Alta Resources Development, LLC's upstream and midstream subsidiaries.

The notes will be issued at par and will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. The offering is being made without registration under the Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

EQT Corporation intends to use the net proceeds from the offering, together with cash on hand and/or borrowings under its revolving credit facility, to fund the cash consideration relating to its acquisition of Alta's upstream and midstream subsidiaries.

Key Takeaways:

  • EQT Corporation has priced a private offering of $500 million in aggregate principal amount of its 3.125% senior notes due 2026 and $500 million in aggregate principal amount of its 3.625% senior notes due 2031.
  • The offering is expected to close on May 17, 2021, subject to customary closing conditions.
  • The notes will be issued at par and will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act.
  • EQT Corporation intends to use the net proceeds from the offering to fund its acquisition of Alta Resources Development, LLC's upstream and midstream subsidiaries.
  • The acquisition is part of EQT's strategy to grow its position in the Marcellus and Utica Shales in the Appalachian Basin.
  • EQT Corporation has a longstanding commitment to the safety of its employees, contractors, and communities, and to the reduction of its overall environmental footprint.

Statistics:

  • $500 million in aggregate principal amount of 3.125% senior notes due 2026 to be issued.
  • $500 million in aggregate principal amount of 3.625% senior notes due 2031 to be issued.
  • Net proceeds from the offering to be used to fund EQT Corporation's acquisition of Alta Resources Development, LLC's upstream and midstream subsidiaries.
  • Acquisition expected to be completed in 2021, subject to customary closing conditions.

Sources:

  • EQT Corporation, "EQT Announces Pricing of $1 Billion Private Offering of Senior Notes" (May 10, 2021).
  • SEC, "Form 8-K" (May 10, 2021).