EQT CORPORATION ANNOUNCES EXCHANGE OFFERS AND CONSENT SOLICITATIONS FOR EQM MIDSTREAM PARTNERS, LP NOTES
EQT (NYSE: EQT) has announced exchange offers for up to $4.54 billion of outstanding notes issued by its subsidiary EQM Midstream Partners, LP. The exchange offers allow eligible holders to swap their existing EQM notes for new EQT notes and cash. The exchange offers will expire on March 24, 2025, with an early tender date of March 7, 2025.
Alongside the exchange offers, EQM is conducting consent solicitations to modify the existing notes' indentures, which would eliminate most restrictive covenants and certain events of default. Holders cannot tender notes without providing consent, and vice versa. The settlement date is expected to be March 26, 2025.
Concurrently, EQM launched a cash tender offer for its 6.500% Senior Notes due 2027, while EQT commenced a separate tender offer for its 3.900% Senior Notes due 2027. The new notes will maintain the same maturity dates, interest rates, and payment dates as the existing notes being exchanged.
EQT (NYSE: EQT) ha annunciato offerte di scambio per un massimo di 4,54 miliardi di dollari di note in circolazione emesse dalla sua sussidiaria EQM Midstream Partners, LP. Le offerte di scambio consentono ai detentori idonei di scambiare le loro note EQM esistenti con nuove note EQT e contante. Le offerte di scambio scadranno il 24 marzo 2025, con una data di offerta anticipata fissata al 7 marzo 2025.
Insieme alle offerte di scambio, EQM sta conducendo richieste di consenso per modificare i contratti delle note esistenti, che eliminerebbero la maggior parte delle convenzioni restrittive e alcuni eventi di default. I detentori non possono presentare le note senza fornire consenso, e viceversa. La data di regolamento è prevista per il 26 marzo 2025.
Contemporaneamente, EQM ha lanciato un'offerta di acquisto in contante per le sue Note Senior al 6,500% in scadenza nel 2027, mentre EQT ha avviato un'offerta di acquisto separata per le sue Note Senior al 3,900% in scadenza nel 2027. Le nuove note manterranno le stesse date di scadenza, tassi d'interesse e date di pagamento delle note esistenti oggetto di scambio.
EQT (NYSE: EQT) ha anunciado ofertas de intercambio por un máximo de 4,54 mil millones de dólares en notas pendientes emitidas por su subsidiaria EQM Midstream Partners, LP. Las ofertas de intercambio permiten a los tenedores elegibles intercambiar sus notas EQM existentes por nuevas notas EQT y efectivo. Las ofertas de intercambio expirarán el 24 de marzo de 2025, con una fecha de presentación anticipada del 7 de marzo de 2025.
Junto con las ofertas de intercambio, EQM está llevando a cabo solicitudes de consentimiento para modificar los contratos de las notas existentes, lo que eliminaría la mayoría de los convenios restrictivos y ciertos eventos de incumplimiento. Los tenedores no pueden presentar notas sin proporcionar consentimiento, y viceversa. Se espera que la fecha de liquidación sea el 26 de marzo de 2025.
Simultáneamente, EQM lanzó una oferta de compra en efectivo por sus Notas Senior al 6,500% con vencimiento en 2027, mientras que EQT inició una oferta de compra separada por sus Notas Senior al 3,900% con vencimiento en 2027. Las nuevas notas mantendrán las mismas fechas de vencimiento, tasas de interés y fechas de pago que las notas existentes que se intercambian.
EQT (NYSE: EQT)는 자회사 EQM Midstream Partners, LP가 발행한 미결제 노트 45억 4천만 달러에 대한 교환 제안을 발표했습니다. 교환 제안은 자격이 있는 보유자가 기존 EQM 노트를 새로운 EQT 노트와 현금으로 교환할 수 있도록 합니다. 교환 제안은 2025년 3월 24일에 만료됩니다, 조기 제출 마감일은 2025년 3월 7일입니다.
교환 제안과 함께 EQM은 기존 노트의 계약을 수정하기 위한 동의 요청을 진행하고 있으며, 이는 대부분의 제한 조항과 특정 채무 불이행 사건을 제거할 것입니다. 보유자는 동의를 제공하지 않고는 노트를 제출할 수 없으며, 그 반대도 마찬가지입니다. 정산일은 2025년 3월 26일로 예상됩니다.
동시에 EQM은 2027년 만기 6.500% 선순위 노트에 대한 현금 입찰을 시작했으며, EQT는 2027년 만기 3.900% 선순위 노트에 대한 별도의 입찰을 시작했습니다. 새로운 노트는 교환되는 기존 노트와 동일한 만기일, 이자율 및 지급일을 유지합니다.
EQT (NYSE: EQT) a annoncé des offres d'échange allant jusqu'à 4,54 milliards de dollars d'obligations en circulation émises par sa filiale EQM Midstream Partners, LP. Les offres d'échange permettent aux détenteurs éligibles d'échanger leurs obligations EQM existantes contre de nouvelles obligations EQT et de l'argent. Les offres d'échange expireront le 24 mars 2025, avec une date de soumission anticipée fixée au 7 mars 2025.
Parallèlement aux offres d'échange, EQM effectue des demandes de consentement pour modifier les contrats des obligations existantes, ce qui éliminerait la plupart des clauses restrictives et certains événements de défaut. Les détenteurs ne peuvent pas soumettre d'obligations sans fournir de consentement, et vice versa. La date de règlement est prévue pour le 26 mars 2025.
En même temps, EQM a lancé une offre d'achat en espèces pour ses Obligations Senior à 6,500% arrivant à échéance en 2027, tandis qu'EQT a lancé une offre d'achat distincte pour ses Obligations Senior à 3,900% arrivant à échéance en 2027. Les nouvelles obligations conserveront les mêmes dates d'échéance, taux d'intérêt et dates de paiement que les obligations existantes échangées.
EQT (NYSE: EQT) hat Austauschangebote für bis zu 4,54 Milliarden Dollar an ausstehenden Anleihen, die von ihrer Tochtergesellschaft EQM Midstream Partners, LP ausgegeben wurden, angekündigt. Die Austauschangebote ermöglichen es berechtigten Inhabern, ihre bestehenden EQM-Anleihen gegen neue EQT-Anleihen und Bargeld einzutauschen. Die Austauschangebote laufen am 24. März 2025 ab, mit einem vorzeitigen Angebotsdatum am 7. März 2025.
Zusammen mit den Austauschangeboten führt EQM Zustimmungserklärungen durch, um die bestehenden Anleihebedingungen zu ändern, was die meisten restriktiven Vereinbarungen und bestimmte Ereignisse des Zahlungsausfalls beseitigen würde. Inhaber können Anleihen nicht ohne Zustimmung einreichen und umgekehrt. Der Abrechnungstermin wird voraussichtlich der 26. März 2025 sein.
Gleichzeitig hat EQM ein Barangebot für seine 6,500% Senior Notes mit Fälligkeit 2027 gestartet, während EQT ein separates Angebot für seine 3,900% Senior Notes mit Fälligkeit 2027 begonnen hat. Die neuen Anleihen werden die gleichen Fälligkeitstermine, Zinssätze und Zahlungstermine wie die bestehenden Anleihen, die ausgetauscht werden, beibehalten.
- Large-scale debt restructuring opportunity worth $4.54 billion
- Maintaining same interest rates and payment schedules in new notes
- Early tender option available for eligible holders
- Elimination of protective covenants for noteholders
- Complex transaction structure requiring simultaneous consent
Insights
This debt exchange offer represents a significant strategic move by EQT to restructure approximately
The proposed elimination of restrictive covenants through the consent solicitations is particularly significant. This modification would provide EQT with greater operational flexibility and potentially easier access to future financing. The identical interest rates and maturity dates of the new notes suggest this is primarily a structural reorganization rather than a distressed exchange, which is positive for both the company's credit profile and market perception.
The early tender premium structure and concurrent tender offers demonstrate a sophisticated approach to liability management. By offering multiple options to noteholders, EQT increases the likelihood of high participation rates while maintaining pricing efficiency. The timing of this transaction, amid current market conditions, suggests proactive management of the company's capital structure rather than reactive measures.
From a credit perspective, this consolidation could potentially improve EQT's debt profile by simplifying the organizational structure and reducing structural subordination issues. The exchange offers' success could lead to more efficient capital allocation and potentially better positioning for future growth initiatives or market opportunities in the natural gas sector.
The following table sets forth the Exchange Consideration and Total Exchange Consideration for each series of Existing EQM Notes:
Title of Notes | CUSIP Number | Principal Amount Outstanding | Exchange Consideration(1) | Total Exchange Consideration(2) |
26885BAM2 / | ||||
26885BAH3 / | ||||
26885BAC4 | ||||
26885BAK6 / | ||||
26885BAP5 / | ||||
26885BAN0 / | ||||
26885BAL4 / | ||||
26885BAE0 |
_________ | |
(1) | For each |
(2) | For each |
In conjunction with the Exchange Offers, EQM is soliciting consents (each, a "Consent Solicitation" and, collectively, the "Consent Solicitations") from Eligible Holders to adopt certain proposed amendments (the "Proposed Amendments") to each of the indentures governing the Existing EQM Notes (the "Existing EQM Indentures"), which, if adopted, would eliminate substantially all of the restrictive covenants, certain events of default and certain other provisions currently contained in the Existing EQM Indentures. Such consents being solicited are each a "Consent" and collectively the "Consents."
An Eligible Holder may not tender their Existing EQM Notes in an Exchange Offer without delivering their Consents and may not deliver their Consents without tendering their Existing EQM Notes. Each Eligible Holder who validly tenders their Existing EQM Notes pursuant to an Exchange Offer will be deemed to have validly delivered their Consent in the corresponding Consent Solicitation with respect to the principal amount of such tendered Existing EQM Notes.
The Exchange Offers and Consent Solicitations are being made upon and are subject to the terms and conditions set forth in the Offering Memorandum and Consent Solicitation Statement, dated February 24, 2025 (as it may be amended or supplemented from time to time, the "Offering Memorandum and Consent Solicitation Statement"). Each Exchange Offer and Consent Solicitation is conditioned upon the completion of the other Exchange Offers and Consent Solicitations, although EQT may waive such condition at any time with respect to any Exchange Offer. Any waiver of a condition by EQT with respect to an Exchange Offer will automatically waive such condition with respect to the corresponding Consent Solicitation. EQT may complete an Exchange Offer even if valid Consents sufficient to effect the Proposed Amendments to the Existing EQM Indenture governing the applicable series of Existing EQM Notes are not received.
The Exchange Offers and the Consent Solicitations will expire at 5:00 p.m.,
Eligible Holders who validly tender their Existing EQM Notes on or prior to 5:00 p.m.,
The maturity date, interest rate and interest payment dates of each New Note issued pursuant to the Exchange Offers will be identical to, and the optional redemption provisions with respect to the subject New Note will be substantially the same as those applicable to, the corresponding Existing EQM Note for which such New Note was exchanged. No accrued and unpaid interest will be payable upon acceptance of any Existing EQM Notes in the Exchange Offers and Consent Solicitations (other than accrued and unpaid interest payable with respect to any fractional portion of New Notes not delivered in consideration of minimum denomination requirements). However, the first interest payment on the New Notes will include the accrued and unpaid interest from the applicable Existing EQM Notes tendered in exchange therefor so that a tendering Eligible Holder will receive the same interest payment they would have received had their Existing EQM Notes not been tendered in the Exchange Offers and Consent Solicitations.
Substantially concurrently with the commencement of the Exchange Offers and Consent Solicitations, (i) EQM commenced a tender offer (the "Concurrent EQM Tender Offer") to purchase for cash any and all of EQM's outstanding
At any time at or before the Expiration Date, if EQM receives valid consents from holders of Existing EQM Notes sufficient to effect the Proposed Amendments with respect to the Existing EQM Notes of a subject series, EQM intends to promptly execute and deliver a supplemental indenture containing the Proposed Amendments to the relevant Existing EQM Indenture, which will immediately become effective upon execution but will only become operative upon the exchange or purchase, as applicable, of all Existing EQM Notes of the subject series validly tendered pursuant to the applicable Exchange Offer or, in the case of the Existing EQM
EQT, in its sole discretion, may modify or terminate any Exchange Offer and may extend the Early Tender Date, the Expiration Date and/or the settlement date with respect to any Exchange Offer, subject to applicable law. Any such modification, termination or extension by EQT with respect to an Exchange Offer will automatically modify, terminate or extend the corresponding Consent Solicitation, as applicable.
The Exchange Offers are only being made, and the New Notes are only being offered and will only be issued, and copies of the Offering Memorandum and Consent Solicitation Statement and other related materials will only be made available, to holders of Existing EQM Notes who complete and return an eligibility form confirming, among other things, that they are either a "qualified institutional buyer" under Rule 144A or not a "
TD Securities (
The Information Agent and Exchange Agent for the Exchange Offers and the Consent Solicitations is Global Bondholder Services Corporation. Copies of the Offering Memorandum and Consent Solicitation Statement and materials related to the Exchange Offers or Consent Solicitations may be obtained from Global Bondholder Services Corporation by calling (212) 430-3774 (banks and brokers, collect) or (855) 654-2015 (all others, toll-free) or by emailing contact@gbsc-usa.com.
This news release is for informational purposes only. The Exchange Offers and the Consent Solicitations are being made only pursuant to the Offering Memorandum and Consent Solicitation Statement, and the information in this news release is qualified by reference to the Offering Memorandum and Consent Solicitation Statement. Further, this news release does not constitute an offer to sell or the solicitation of an offer to buy the Existing EQM Notes, the New Notes or any other securities. No recommendation is made as to whether holders should tender any Existing EQM Notes in response to the Exchange Offers or the Concurrent EQM Tender Offer (and deliver Consents in response to the Consent Solicitations). Holders of Existing EQM Notes must make their own decision as to whether to participate in the Exchange Offers and the Consent Solicitations and, if so, the principal amount of Existing EQM Notes to tender.
The New Notes offered in the Exchange Offers have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws. Therefore, the New Notes may not be offered or sold in
Investor Contact
Cameron Horwitz
Managing Director, Investor Relations & Strategy
412.445.8454
Cameron.Horwitz@eqt.com
About EQT Corporation
EQT Corporation is a premier, vertically integrated American natural gas company with production and midstream operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do.
Cautionary Statements
This news release contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this news release specifically include statements regarding EQT's and EQM's plans and expected timing with respect to the Exchange Offers, the Consent Solicitations, the Concurrent EQM Tender Offer and the EQT Tender Offer.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company has based these forward-looking statements on current expectations and assumptions about future events, taking into account all information currently known by it. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond its control. These risks and uncertainties include, but are not limited to, volatility of commodity prices; the costs and results of drilling and operations; uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying production forecasts; the quality of technical data; the Company's ability to appropriately allocate capital and other resources among its strategic opportunities; access to and cost of capital; the Company's hedging and other financial contracts; inherent hazards and risks normally incidental to drilling for, producing, transporting, storing and processing natural gas, natural gas liquids and oil; operational risks and hazards incidental to the gathering, transmission and storage of natural gas as well as unforeseen interruptions; cyber security risks and acts of sabotage; availability and cost of drilling rigs, completion services, equipment, supplies, personnel, oilfield services and pipe, sand and water required to execute the Company's exploration and development plans, including as a result of inflationary pressures or tariffs; risks associated with operating primarily in the Appalachian Basin; the ability to obtain environmental and other permits and the timing thereof; construction, business, economic, competitive, regulatory, judicial, environmental, political and legal uncertainties related to the development and construction by the Company or its joint ventures of pipeline and storage facilities and transmission assets and the optimization of such assets; the Company's ability to renew or replace expiring gathering, transmission or storage contracts at favorable rates, on a long-term basis or at all; risks relating to the Company's joint venture arrangements; government regulation or action, including regulations pertaining to methane and other greenhouse gas emissions; negative public perception of the fossil fuels industry; increased consumer demand for alternatives to natural gas; environmental and weather risks, including the possible impacts of climate change; and disruptions to the Company's business due to recently completed divestitures, acquisitions and other significant strategic transactions. These and other risks and uncertainties are described under the "Risk Factors" section and elsewhere in EQT's Annual Report on Form 10-K for the year ended December 31, 2024 and in other documents EQT subsequently files from time to time with the Securities and Exchange Commission. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it.
Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, the Company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE EQT Corporation (EQT-IR)
FAQ
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