EQT Corporation commenced exchange offers for any and all outstanding notes issued by its indirect wholly owned subsidiary, EQM Midstream Partners, LP (EQM), for up to $4,541,839,000 aggregate principal amount of new EQT notes and cash. Concurrently, EQM launched a tender offer to purchase for cash any and all of its outstanding 6.500% Senior Notes due 2027, and EQT commenced a tender offer for its 3.900% Senior Notes due 2027 for up to $750 million aggregate purchase price.
In conjunction with these offers, EQM is soliciting consents from holders of its notes to amend the indentures, which would eliminate substantially all restrictive covenants and certain events of default. Holders tendering notes in the exchange offers are deemed to deliver their consents. The purpose of these transactions is to reduce the company's overall principal amount of debt and optimize its capital structure.
This comprehensive debt restructuring initiative aims to simplify EQT's capital structure and reduce its debt burden following the Equitrans acquisition. By exchanging EQM notes for EQT notes and tendering for existing debt, the company seeks to improve financial flexibility and potentially lower its cost of capital. The proposed indenture amendments would also streamline financial reporting and governance.
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