8-KMaterial AgreementsFinancial EventsExhibits & Filings

EQT Corp 8-K Report, Material Agreement (Nov 7, 2011)

Filed November 7, 2011For Securities:EQT

Summary

EQT Corporation (EQT) filed an 8-K on November 7, 2011, to report the completion of a public offering of $750 million in aggregate principal amount of 4.875% Senior Notes due 2021. The net proceeds from this offering are intended for general corporate purposes. The issuance was facilitated by an Underwriting Agreement with Barclays Capital Inc., Deutsche Bank Securities Inc., and J.P. Morgan Securities LLC. These notes were issued under a previously established Indenture, further supplemented by a Fourth Supplemental Indenture executed on November 7, 2011. Investors should note that the notes were sold at a slight discount to their principal amount (98.435% of principal) and offered to the public at a price of 99.085% of principal. The indenture governing these notes includes covenants that place restrictions on EQT's ability to incur certain liens, engage in sale and leaseback transactions, and undertake significant asset dispositions. This debt issuance represents a material expansion of EQT's long-term debt obligations.

Key Highlights

  • 1EQT Corporation successfully completed a public offering of $750 million in 4.875% Senior Notes due 2021.
  • 2The company plans to use the net proceeds from this offering for general corporate purposes.
  • 3The notes were issued under EQT's automatic shelf registration statement on Form S-3ASR.
  • 4The issuance involved an Underwriting Agreement with a syndicate led by Barclays, Deutsche Bank, and J.P. Morgan.
  • 5The Senior Notes were issued at a price of 98.435% of their principal amount to the underwriters.
  • 6The Indenture governing the notes includes covenants restricting liens, sale-leasebacks, and asset sales.
  • 7This filing represents the creation of a direct financial obligation for EQT Corporation.

Frequently Asked Questions

This 8-K filing primarily reports on EQT Corporation's entry into a material definitive agreement, specifically the completion of a public offering of $750 million in 4.875% Senior Notes due 2021 and the creation of this direct financial obligation.

EQT Corporation intends to use the net proceeds from the offering for general corporate purposes.

The Senior Notes carry a coupon rate of 4.875% and mature in 2021. They were issued under an existing Indenture, supplemented by a Fourth Supplemental Indenture. The notes were sold to underwriters at 98.435% of their principal amount and offered to the public at 99.085% of their principal amount. Interest is payable semi-annually starting May 15, 2012.

The Indenture contains covenants that limit EQT's ability to incur certain liens that secure indebtedness, engage in certain sale and leaseback transactions, and enter into consolidations, mergers, or conveyances of substantially all of its assets.