Equitrans Midstream Corporation (NYSE: ETRN) has announced today that its subsidiary, EQM Midstream Partners, LP (EQM), is planning to offer $600 million in senior notes due 2029 in a private offering, subject to market conditions. The net proceeds from the offering will be used by EQM to repay certain outstanding indebtedness, including borrowings under its credit agreement, and for general partnership purposes.
The offering of the notes is not registered under the Securities Act of 1933 or any state securities laws and may only be offered or sold in the United States pursuant to an exemption from the registration requirements. The notes are being offered to qualified institutional buyers under Rule 144A and to non-U.S. persons in transactions outside the United States under Regulation S.
In discussing the announcement, the management emphasized the intended use of the proceeds from the offering. "We are strategically utilizing the proceeds from this offering to strengthen our financial position by reducing our outstanding indebtedness," said a company spokesperson.
The company's shares have responded well to the news, moving 1.3% and currently trading at a price of $10.63.
The full 8-K submission by Equitrans Midstream Corporation is available here.
