CANONSBURG, Pa. - Equitrans Midstream Corporation (NYSE:ETRN) and its subsidiary EQM Midstream Partners, LP announced the pricing of a $600 million senior notes offering at par, with a 6.375% interest rate, maturing in 2029. The offering is expected to close on February 26, 2024, subject to customary closing conditions.
The proceeds from the sale of the notes are intended for the repayment of existing indebtedness, including borrowings under EQM's Third Amended and Restated Credit Agreement from October 31, 2018, as well as for general partnership purposes.
The notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws. Consequently, they may not be offered or sold within the United States absent registration or an applicable exemption from the registration requirements. The offering is directed at qualified institutional buyers in accordance with Rule 144A and to non-U.S. persons in offshore transactions under Regulation S of the Securities Act.
This announcement comes with a cautionary note that it does not serve as an offer to sell or a solicitation of an offer to buy the notes or any other securities. Additionally, the press release includes forward-looking statements regarding the anticipated closing of the offering and the intended use of proceeds, which involve certain risks and uncertainties that could cause actual results to differ materially from those projected.
InvestingPro Insights
As Equitrans Midstream Corporation (NYSE:ETRN) navigates its financial strategy with the recent announcement of a $600 million senior notes offering, investors are looking closely at the company's performance metrics and market position. According to InvestingPro data, ETRN showcases a solid market capitalization of approximately $4.64 billion USD, indicating a strong presence in the market. The company's Price to Earnings (P/E) Ratio stands at 11.86, which aligns with the adjusted P/E Ratio for the last twelve months as of Q4 2023, marked at 12.0. This suggests a reasonable valuation of the company's earnings.
InvestingPro Tips highlight Equitrans Midstream's impressive gross profit margins, which have reached 87.23% over the last twelve months as of Q4 2023. This level of profitability is significant and may reassure investors of the company's ability to manage costs effectively. Additionally, ETRN has experienced a strong return over the last year, with a one-year price total return of 86.01%, reflecting positively on investor confidence and market performance.
For those considering a deeper dive into Equitrans Midstream's financials and future prospects, InvestingPro offers additional insights. Currently, there are 9 more InvestingPro Tips available, which can help investors make more informed decisions. To access these tips and gain a comprehensive understanding of ETRN's financial health, visit https://www.investing.com/pro/ETRN. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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