Summary
EQT Corporation (EQT) has filed an 8-K report detailing the entry into a material definitive agreement for the issuance of $350 million in aggregate principal amount of 5.00% senior notes due 2029. This offering, expected to close on November 16, 2020, is a key component in EQT's financing strategy for its previously announced acquisition of upstream and midstream assets in the Appalachian Basin from Chevron U.S.A. Inc. The net proceeds, estimated at approximately $345.6 million after underwriting discounts, will be used to partially fund this significant acquisition, indicating EQT's strategic expansion in a core operational area. The filing also highlights the extensive involvement of the underwriters, including BofA Securities, Inc., Citigroup Global Markets Inc., and Credit Suisse Securities (USA) LLC, in various financial activities for EQT, such as previous stock offerings, credit facilities, and tender offers. This underscores the close relationships between EQT and its financial partners as it executes its growth initiatives.
Key Highlights
- 1EQT Corporation entered into an Underwriting Agreement on October 30, 2020, to issue $350 million of 5.00% senior notes due 2029.
- 2The offering is expected to close on November 16, 2020.
- 3Net proceeds are estimated to be approximately $345.6 million after deducting underwriting discounts and commissions.
- 4Proceeds will be used to fund a portion of the purchase price for the pending acquisition of upstream and midstream assets from Chevron U.S.A. Inc. in the Appalachian Basin.
- 5The Underwriting Agreement includes customary provisions such as representations, warranties, closing conditions, and termination clauses.
- 6Several major financial institutions, including BofA Securities, Citigroup, and Credit Suisse, are acting as underwriters and have prior relationships with EQT.