Summary
EQT Corporation filed an 8-K on December 9, 2010, to report the entry into a new $1.5 billion unsecured Revolving Credit Agreement, effective December 8, 2010. This new agreement replaces a prior facility and extends the maturity date to December 8, 2014, with options for two one-year extensions. The credit facility provides flexibility for various corporate uses, including working capital, capital expenditures, share repurchases, and commercial paper support. The terms are largely consistent with the previous agreement, maintaining customary covenants such as restrictions on liens, a maximum consolidated debt-to-total capital ratio of 65%, and limitations on business changes, mergers, or acquisitions. Additionally, EQT filed a new shelf registration statement on Form S-3, which became effective immediately, to allow for the future issuance of registered debt and equity securities, replacing an existing shelf registration that was set to expire.
Key Highlights
- 1EQT Corporation secured a new $1.5 billion unsecured Revolving Credit Agreement, enhancing its financial flexibility.
- 2The new credit facility has a maturity date of December 8, 2014, with provisions for potential one-year extensions.
- 3Proceeds from the revolving credit line can be used for working capital, capital expenditures, share repurchases, and commercial paper programs.
- 4The agreement replaced the previous revolving credit facility, which was terminated without penalty.
- 5Customary covenants are in place, including a maximum consolidated debt-to-total capital ratio of 65%.
- 6A new shelf registration statement on Form S-3 was filed and became effective, allowing for future offerings of debt and equity securities.