8-KMaterial AgreementsFinancial EventsExhibits & Filings

EQT Corp 8-K Report, Material Agreement (May 31, 2019)

Filed May 31, 2019For Securities:EQT

Summary

EQT Corporation (EQT) announced on May 31, 2019, the entry into a $1.0 billion unsecured multi-draw term loan facility with PNC Bank, National Association, acting as administrative agent. The company immediately drew the full $1.0 billion and used the proceeds primarily to repay its $700 million senior notes maturing on June 1, 2019, and to reduce outstanding borrowings under its revolving credit facility. This strategic move addresses near-term debt obligations and reconfigures the company's debt structure. The new Term Loan Facility matures on May 31, 2021. Borrowings can be structured as Base Rate Loans or Eurodollar Rate Loans, with interest rates tied to EQT's credit ratings. The facility includes customary covenants, such as a maximum consolidated debt to total capital ratio of 65%, restrictions on liens, business changes, and mergers/acquisitions. This action provides EQT with financial flexibility while managing its debt profile.

Key Highlights

  • 1EQT Corp entered into a $1.0 billion unsecured multi-draw term loan facility on May 31, 2019.
  • 2The full $1.0 billion was drawn immediately upon entering the agreement.
  • 3Proceeds were used to repay $700 million in 8.125% Senior Notes maturing June 1, 2019.
  • 4Outstanding borrowings under EQT's $2.5 billion revolving credit facility were also reduced.
  • 5The Term Loan Facility matures on May 31, 2021.
  • 6The agreement includes covenants such as a maximum debt-to-total capital ratio of 65% and restrictions on liens and business changes.

Frequently Asked Questions

The primary purpose was to refinance EQT's $700 million in senior notes due on June 1, 2019, and to pay down existing debt under its revolving credit facility. This proactively addresses an upcoming debt maturity and improves the company's debt structure.

The facility is unsecured, has a $1.0 billion capacity, matures on May 31, 2021, and can bear interest at either a Base Rate or a Eurodollar Rate plus a margin determined by EQT's credit ratings. It also includes various financial and operational covenants.

The loan includes standard covenants for a facility of this type. Notably, it restricts consolidated debt to no more than 65% of total capital, imposes limitations on liens, changes to the company's business, and mergers or acquisitions, which are typical for corporate lending agreements.

Borrowings can be either Base Rate Loans or Eurodollar Rate Loans. For Base Rate Loans, the margin is 0.00% based on EQT's current credit ratings. For Eurodollar Rate Loans, the margin is 1.00% based on EQT's current credit ratings. The actual Base Rate and Eurodollar Rate are defined within the agreement.