8-KMaterial AgreementsExhibits & Filings

EQT Corp 8-K Report, Material Agreement (Sep 22, 2022)

Filed September 22, 2022For Securities:EQT

Summary

EQT Corporation (EQT) has filed an 8-K report detailing the entry into a material definitive agreement for the offering and sale of $1.0 billion in senior notes. These notes are comprised of $500 million in 5.678% senior notes due 2025 and $500 million in 5.700% senior notes due 2028. The primary purpose of this offering is to fund a portion of the cash consideration for EQT's previously announced acquisition of THQ Appalachia I Midco, LLC and THQ-XcL Holdings I Midco, LLC (the Tug Hill and XcL Midstream Acquisition). In conjunction with this debt issuance, EQT has also secured financing commitments for a $1.25 billion unsecured bridge loan facility and a $1.25 billion unsecured term loan facility. These facilities, along with cash on hand and revolving credit, will be used to finance the Tug Hill and XcL Midstream Acquisition. The underwriting agreement includes standard provisions, indemnification clauses, and is expected to close on October 4, 2022, with net proceeds of approximately $992.9 million anticipated.

Key Highlights

  • 1EQT Corporation is issuing $1.0 billion in senior notes: $500 million of 5.678% senior notes due 2025 and $500 million of 5.700% senior notes due 2028.
  • 2The primary use of proceeds from the note offering is to fund the Tug Hill and XcL Midstream Acquisition.
  • 3The offering is expected to close on October 4, 2022, with EQT anticipating net proceeds of approximately $992.9 million after underwriting discounts and commissions.
  • 4EQT has secured commitments for a $1.25 billion unsecured bridge loan facility and a $1.25 billion unsecured term loan facility.
  • 5These new debt facilities, alongside existing cash and credit lines, will support the financing of the Tug Hill and XcL Midstream Acquisition.
  • 6The underwriting agreement involves RBC Capital Markets, LLC, Mizuho Securities USA LLC, and PNC Capital Markets LLC as representatives of the underwriters.
  • 7Some underwriters or their affiliates are also involved as lenders or agents for EQT's credit facilities, highlighting a broad financial relationship.

Frequently Asked Questions

EQT is issuing the senior notes to help finance the cash consideration for its previously announced acquisition of THQ Appalachia I Midco, LLC and THQ-XcL Holdings I Midco, LLC, referred to as the Tug Hill and XcL Midstream Acquisition.

The offering is expected to close on October 4, 2022.

In addition to the senior notes, EQT has commitments for a $1.25 billion unsecured bridge loan facility and a $1.25 billion unsecured term loan facility. These facilities, along with cash on hand and its revolving credit facility, will be used to fund the acquisition.

EQT is issuing $500 million in aggregate principal amount of 5.678% senior notes due 2025 and $500 million in aggregate principal amount of 5.700% senior notes due 2028.