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EQT Corp. To Offer $350 Mln Of Convertible Senior Notes In Private Offering

EQT Corp. (EQT) said Thursday that subject to market conditions and other factors, it intends to offer $350 million aggregate principal amount of convertible senior notes due 2026, in a private offering to qualified institutional buyers.

EQT also intends to grant the initial purchasers of the notes a 13-day option to purchase up to an additional $52.5 million aggregate principal amount of notes.

The notes will be senior unsecured obligations of EQT and will accrue interest payable semiannually in arrears. The notes will be convertible into cash, shares of EQT's common stock, or a combination thereof, at EQT's election.

The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering.

EQT intends to use a portion of the net proceeds of the offering to pay the cost of the capped call transactions and the remainder of the net proceeds to repay or redeem certain of its outstanding debt, including those with near-term maturities, and for general corporate purposes.

In connection with the pricing of the notes, EQT expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their respective affiliates and other financial institutions.

The capped call transactions are expected generally to reduce the potential dilution to EQT's common stock upon any conversion of notes at maturity or offset any cash payments that EQT is required to make in excess of the principal amount of such converted notes, with such reduction and offset subject to a cap.

The strike price of the capped call transactions and the premium paid will be determined at the time of pricing of the offering.

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