#United States #EQT Corporation #EQM Midstream #Tender Offer #Pittsburgh

EQT Corporation's Tender Offer for Senior Notes Updated

EQT Corporation (NYSE: EQT) has taken significant steps in its ongoing efforts to optimize its financing structure. Recently, the company revealed the early results and the upsizing of its tender offer orchestrated through its wholly-owned subsidiary, EQM Midstream Partners, LP. This tender offer, which focuses on purchasing several series of senior notes, is a strategic move aimed at enhancing EQT's financial flexibility.

Understanding the Tender Offer

The tender offer includes the acquisition of EQM’s existing senior notes: specifically, the 6.500% Senior Notes maturing in 2048, the 5.500% Notes due 2028, the 4.50% Notes due 2029, and the 7.500% Senior Notes due 2030. As part of this initiative, EQM has announced a substantial increase in the maximum aggregate purchase price from $1.275 billion to $1.3 billion, excluding accrued interest.

The results from the Early Tender Date, which closed on December 9, 2024, indicate a robust response from investors. Notably, a significant percentage of the various note series were validly tendered, suggesting strong confidence in EQT’s strategy. For instance, approximately 85.4% of the 2048 Notes and 86.0% of the 2028 Notes tendered indicate a high level of interest.

Adjustments and Strategies

To facilitate a smoother transaction, EQT has maintained all other terms and conditions of the tender offer and related consent solicitation, which were initially outlined in the Offer to Purchase and Consent Solicitation Statement dated November 25, 2024. Amidst the growing interest and high submission rates, EQM is utilizing acceptance priority procedures for the notes tendered, particularly given the purchase limits now in place.

As detailed in the announcement, withdrawal rights for tenders and consents expired simultaneously with the tender date, preventing any retractions by participants. This clean-cut deadline reinforces the security and decisiveness of the investment for EQT's stakeholders.

The Role of RBC Capital Markets

RBC Capital Markets has stepped in as the Sole Dealer Manager overseeing the tender offer, handling queries and facilitating communications. This oversight is essential considering the complexities often involved in capital market transactions, particularly with the intricacies of tender offers and consent solicitation processes. Stakeholders can reach out to RBC for further insights, indicating a move toward transparency and accessibility.

Future Expectations

EQT plans to accept validly tendered notes post-Early Tender Date, with all conditions of the offer expected to be satisfied by the anticipated Early Settlement Date of December 30, 2024. Furthermore, EQT is proceeding with solicitations for consents necessary for proposed amendments to the indentures governing the 2028 and 2048 notes.

By taking these proactive measures, EQT Corporation aims not only to streamline its liabilities but also to prepare for future growth initiatives. The emphasis on shareholder communication, as seen through RBC's involvement, showcases EQT’s commitment to building investor relations and enhancing market confidence.

In conclusion, EQT's tender offer represents a strategic maneuver aimed at fortifying its financial structure, with promising early results setting a solid foundation for future business engagements and growth ambitions. Stakeholders and investors alike should stay tuned for further updates as this offer progresses through its planned timeline.

Contact Information:
For further inquiries, contact:
Cameron Horwitz, Managing Director, Investor Relations Strategy, EQT Corporation
Phone: 412-445-8454
Email: [email protected]