EQT enters into $1 billion term loan due 2021 at Libor plus 100 bps

By Sarah Lizee

Olympia, Wash., May 31 – EQT Corp. entered into a term loan agreement on Friday with PNC Bank, NA as administrative agent, providing for a $1 billion unsecured multi-draw term loan due May 31, 2021, according to an 8-K filing with the Securities and Exchange Commission.

On Friday, the company borrowed all $1 billion of the commitments under the loan and will apply the proceeds to repay its $700 million of 8.125% senior notes maturing on June 1, 2019, repay outstanding borrowings under its $2.5 billion revolving credit facility and pay interest and fees related to the term loan agreement.

Interest is currently Libor plus 100 basis points. The margin can range from 87.5 bps to 150 bps, depending on the company’s debt ratings.

The agreement includes a maximum ratio of consolidated debt to total capital of the company and its subsidiaries so that consolidated debt shall at no time exceed 65% of total capital.

PNC Capital Markets LLC, Wells Fargo Securities, LLC, BMO Capital Markets, BofA Securities, Inc. and TD Securities (USA) LLC are joint lead arrangers and bookrunners.

Wells Fargo Bank, NA is the syndication agent. Bank of America, NA, BMO Harris Bank NA and Toronto-Dominion Bank, New York Branch are the co-documentation agents.

EQT is an integrated energy company based in Pittsburgh.

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