8-KMaterial AgreementsFinancial EventsExhibits & Filings

EQT Corp 8-K Report, Material Agreement (Aug 3, 2017)

Filed August 3, 2017For Securities:EQT

Summary

EQT Corporation (EQT) filed an 8-K on August 3, 2017, primarily detailing the amendment and restatement of its revolving credit facility. The key update is the increase of the facility's aggregate commitment from $1.5 billion to $2.5 billion, contingent upon the successful closing of its previously announced acquisition of Rice Energy Inc. This enhanced credit facility, maturing on July 31, 2022, with options for extensions, provides EQT with significant financial flexibility for working capital, capital expenditures, share repurchases, and crucially, to fund the Rice Energy acquisition. The agreement includes customary covenants and events of default, such as a leverage ratio not exceeding 65% of total capital. The filing also serves as a reminder to investors regarding the ongoing Rice Energy acquisition. EQT emphasizes that it has filed a registration statement (Form S-4) containing a preliminary joint proxy statement/prospectus related to the transaction. Investors are strongly encouraged to review these filings for important details about the acquisition and to consult EQT and Rice's investor relations for further information. The company reiterates its commitment to providing transparency and compliance with SEC regulations throughout the acquisition process.

Key Highlights

  • 1EQT Corporation amended and restated its $1.5 billion unsecured revolving credit facility, increasing potential borrowing capacity.
  • 2The credit facility's aggregate commitments will automatically increase to $2.5 billion upon closing of the Rice Energy Inc. acquisition.
  • 3The amended credit agreement matures on July 31, 2022, with provisions for two one-year extensions.
  • 4Loan proceeds can be used for working capital, capital expenditures, share repurchases, and to fund the Rice Energy acquisition.
  • 5The agreement includes covenants, such as a maximum consolidated debt-to-total capital ratio of 65%.
  • 6EQT has filed a registration statement (Form S-4) containing a preliminary joint proxy statement/prospectus for the Rice Energy acquisition, urging investors to review it.
  • 7The filing serves as a direct financial obligation notice related to the credit facility.

Frequently Asked Questions

This 8-K filing primarily announces the amendment and restatement of EQT Corporation's revolving credit agreement, increasing its borrowing capacity and providing financial flexibility, especially in relation to the pending acquisition of Rice Energy Inc.

The aggregate commitments under the credit facility will automatically increase from $1.5 billion to $2.5 billion once the acquisition of Rice Energy Inc. is successfully closed, subject to certain conditions. This signifies the importance of the acquisition for EQT's financing plans.

The credit agreement allows for up to $1.5 billion in borrowings, increasing to $2.5 billion post-Rice acquisition, with a maturity date of July 31, 2022. It offers options for Base Rate Loans and Eurodollar Rate Loans, with repayment due by maturity. Covenants include a maximum debt-to-total capital ratio of 65% and restrictions on liens, business changes, and mergers/acquisitions.

EQT has filed a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus. Investors are urged to read these documents, as well as other relevant filings with the SEC, for detailed information. Free copies can be obtained from EQT's Investor Relations or the SEC's website.