Summary
EQT Corporation (EQT) filed an 8-K on February 18, 2014, to announce the entry into a new, unsecured $1.5 billion Amended and Restated Revolving Credit Agreement. This new agreement replaces a prior agreement that was set to expire in December 2016. The new facility has a stated maturity date of February 18, 2019, with options for two one-year extensions, providing EQT with extended financial flexibility. The primary purpose of this credit facility is to support EQT's general corporate needs, including working capital, capital expenditures, share repurchases, and debt repayment. The terms and conditions are largely consistent with the previous agreement, indicating a stable financing structure for the company. Key covenants include a restriction on liens, a maximum consolidated debt to total capital ratio of 65%, and limitations on business changes and mergers/acquisitions.
Key Highlights
- 1EQT entered into a new $1.5 billion Amended and Restated Revolving Credit Agreement.
- 2The new credit facility extends EQT's borrowing capacity to February 18, 2019, with potential for further extensions.
- 3The agreement replaces a prior $1.5 billion revolving credit facility that was terminated simultaneously.
- 4Proceeds from the credit agreement can be used for working capital, capital expenditures, share repurchases, and other corporate purposes.
- 5The credit agreement includes customary covenants such as a debt-to-capital ratio limit of 65% and restrictions on liens and business changes.
- 6PNC Bank, National Association, continues to serve as the Administrative Agent, Swing Line Lender, and an L/C Issuer.
- 7The new agreement was effective immediately upon signing on February 18, 2014.