EQT In Midstream Joint Venture With Blackstone Credit for Cash Consideration Of $3.5 Bln

(RTTNews) - EQT Corporation (EQT), a natural gas producer, Monday said it has agreed to form a new midstream joint venture with funds managed by Blackstone Credit & Insurance valued about $8.8 billion.

As per the deal, BXCI will give $3.5 billion in cash to EQT for a non-controlling common equity interest in the JV. The JV provides EQT with a large-scale equity capital solution at an accretive cost of capital. Additionally, EQT will retain the rights to growth projects associated with the assets contributed to the JV, including the planned Mountain Valley Pipeline (MVP) expansion and the MVP Southgate project.

EQT plans to use proceeds from this transaction to pay down its term loan and revolving credit facility and redeem and tender for senior notes.

"This transaction underscores the ultra-high-quality nature of EQT's regulated midstream assets, which service one of the strongest power demand growth regions in the United States underpinned by long-term contracts with the region's leading utilities. Importantly, through this joint venture EQT preserves the benefits of the Equitrans acquisition by retaining the long-term value from synergy capture and growth projects," said EQT President and CEO Toby Z. Rice.