8-KMaterial AgreementsExhibits & Filings

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

Filed October 3, 2017For Securities:EQT

Summary

EQT Corporation (EQT) filed an 8-K on October 3, 2017, to report a material definitive agreement concerning a significant debt offering. The company entered into an Underwriting Agreement for the public offering of $3 billion in aggregate principal amount of various senior notes, including Floating Rate Notes due 2020, 2.500% Senior Notes due 2020, 3.000% Senior Notes due 2022, and 3.900% Senior Notes due 2027. This debt issuance is strategically tied to EQT's previously announced acquisition of Rice Energy Inc. (Rice).

Key Highlights

  • 1EQT is raising $3 billion through a public offering of senior notes with maturities in 2020, 2022, and 2027.
  • 2The primary purpose of the debt offering is to finance the acquisition of Rice Energy Inc.
  • 3Proceeds will be used for the cash consideration of the Rice acquisition, to pay related expenses, and to extinguish approximately $1.9 billion of Rice's net debt and preferred equity.
  • 4The offering is expected to close on October 4, 2017.
  • 5The debt issuance is being made under EQT's existing shelf registration statement.
  • 6The Underwriting Agreement contains standard representations, warranties, conditions to closing, and termination provisions.
  • 7EQT has also filed a registration statement (Form S-4) related to the Rice acquisition, which includes a preliminary joint proxy statement/prospectus.

Frequently Asked Questions

EQT is offering a total of $3 billion in aggregate principal amount of senior notes across several tranches with different maturities.

The net proceeds will be used to fund the cash portion of the Rice Energy acquisition, cover transaction-related expenses, and extinguish approximately $1.9 billion of Rice's existing debt and preferred equity. Any remaining funds may be used for general corporate purposes, potentially including the repayment of EQT's own maturing notes.

This debt offering is a crucial component of EQT's financing plan for its previously announced acquisition of Rice Energy. A significant portion of the proceeds is earmarked for the acquisition itself and for managing the acquired company's debt.

The offering is anticipated to close on October 4, 2017.