EQT Corporation announced the closing and funding of its previously announced midstream joint venture with an affiliate of Blackstone Credit & Insurance (BXCI). EQT received $3.5 billion in cash consideration, net of certain transaction fees and expenses, from BXCI for a non-controlling common equity interest in the JV. This transaction was a key component of EQT's deleveraging strategy.
EQT utilized the proceeds from this transaction to pay down its term loan and revolving credit facility. The funds also repaid the bridge term loan facility that was used to finance the redemption and repurchase of certain senior notes of EQM Midstream Partners, LP, including those from the recently expired tender offer. This closing significantly advances EQT's deleveraging strategy and strengthens its balance sheet.
The successful completion of this joint venture underscores the value of EQT's regulated midstream assets and its commitment to financial discipline. This strategic partnership is expected to provide EQT with enhanced financial flexibility and support its long-term growth initiatives.
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