EQM Midstream completes upsized, 2-part bond offering; terms

EQM Midstream Partners LP has wrapped a $1.9 billion, two-part senior unsecured notes offering to print $800 million of 4.50% eight-year paper and $1.1 billion of 4.75% 10-year bonds, sources said. The Barclays-led deal was upsized by $150 million, and both tranches priced at the tight end of guidance.

EQM Midstream Partners owns, operates, acquires and develops midstream assets in the Appalachian Basin. Proceeds of the notes will be used to repay its outstanding term loan A due 2022, to purchase up to $500 million of its outstanding bonds via tender offers, and for general partnership purposes. The tender offers will target the company's existing 4.75% senior unsecured notes due 2023 and 4% senior unsecured notes due 2024, according to a company statement.

If the tender offers are not consummated or the proceeds of the notes exceed the amount needed to fund the offers, EQM said it intends to use any remaining funds to repay certain outstanding debt, including borrowings under its $3 billion credit facility, or to prefund capital expenditures and/or capital contributions to Mountain Valley Pipeline LLC. Terms: