Summary
EQT Corporation (EQT) announced on September 27, 2005, its intention to issue senior notes in a private placement, with an initial principal amount of $150 million, potentially increasing to $200 million. These notes are slated for a 2015 maturity, though they have an initial maturity around ninety days after issuance, with an automatic extension to ten years upon registration with the Pennsylvania Public Utility Commission. The primary stated purpose for this debt issuance is to finance long-term capital expenditures. However, the immediate use of the proceeds will be to reduce the company's outstanding commercial paper. In conjunction with this offering, EQT will also be disclosing to potential investors certain information that has not been previously reported, as detailed in Exhibit 99.1.
Key Highlights
- 1EQT Corp plans a private placement of senior notes totaling $150 million, with an option to increase to $200 million.
- 2The notes are intended to mature in 2015 but feature an initial maturity of approximately 90 days.
- 3Maturity automatically extends to ten years upon registration with the Pennsylvania Public Utility Commission.
- 4Proceeds will primarily fund long-term capital expenditures.
- 5Initially, the proceeds will be used to reduce outstanding commercial paper.
- 6EQT will disclose previously non-public information to potential investors in connection with the offering.