Current Report Filing (8-k)
March 06 2020 - 6:04AM
Edgar (US Regulatory)
0001540947
false
0001540947
2020-03-02
2020-03-03
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): March 3, 2020
EQM Midstream Partners, LP
(Exact name of registrant as specified
in its charter)
Delaware
|
001-35574
|
37-1661577
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
2200 Energy Drive
Canonsburg, Pennsylvania
(Address of principal
executive offices)
|
15317
(Zip Code)
|
Registrants telephone number, including area code: (724) 271-7600
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Securities registered pursuant
to Section 12(b) of the Act:
Title
of each class
|
|
Trading
Symbol(s)
|
|
Name
of each exchange on which registered
|
Common Units Representing Limited Partner Interests
|
|
EQM
|
|
New York Stock Exchange
|
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.01 Entry Into a Material Definitive Agreement.
Intercompany Loan Agreement
Equitrans Midstream Corporation (ETRN) accepted
a term loan (the Intercompany Loan) in the stated principal amount of $650.0 million from EQM Midstream Partners, LP (EQM), a subsidiary of ETRN, under
the terms of that certain Loan Agreement, dated as of March 3, 2020 (the Intercompany Loan Agreement), by and between EQM, as lender,
and ETRN, as borrower. The Intercompany Loan has a maturity date of March 3, 2023, but may be accelerated upon ETRN’s failure
to pay interest and other obligations as they become due under the Intercompany Loan Agreement and other events of default
thereunder. Interest on the Intercompany Loan accrues and is payable semi-annually in arrears starting in September 2020 at an
interest rate of 7.0% per annum, subject to an additional 2.0% per annum during the occurrence and continuance of certain events
of default. The Intercompany Loan Agreement is a general unsecured, senior obligation of ETRN and contains certain representations
and covenants, including a limitation on indebtedness, subject to certain exceptions enumerated therein. ETRN may prepay the loans
thereunder in whole or in part at any time without premium or penalty. Loans prepaid may not be reborrowed.
The Conflicts Committee
(the EQM Conflicts Committee) of the Board of Directors (the EQM Board) of EQGP Services, LLC (the EQM General Partner), by unanimous
vote, (i) determined that entering into the Intercompany Loan Agreement is in the best interests of EQM, its subsidiaries and
the holders of outstanding EQM common units (other than ETRN or its subsidiaries), (ii) approved entering into the Intercompany
Loan Agreement (the foregoing constituting “Special Approval” as defined in EQM’s Fourth Amended and Restated
Agreement of Limited Partnership dated as of April 10, 2019, as amended), and (iii) recommended that the EQM Board approve entering
into the Intercompany Loan Agreement.
The EQM Board, by
unanimous vote, (i) determined that entering into the Intercompany Loan Agreement is in the best interests of EQM and its
subsidiaries and the holders of outstanding EQM common units, and (ii) approved entering into the
Intercompany Loan Agreement.
The Intercompany Loan Agreement is attached
as Exhibit 10.1 to this Current Report and incorporated into this Item 1.01 by reference. The foregoing summary has been included
to provide investors and security holders with information regarding the terms of the Intercompany Loan Agreement and is qualified
in its entirety by the terms and conditions of the Intercompany Loan Agreement. It is not intended to provide any other factual
information about EQM, ETRN or their respective subsidiaries and affiliates.
Item 8.01. Other Events.
Share Purchase Agreement
On March 5, 2020,
ETRN completed (i) its purchase of 4,769,496 shares (the Cash Shares) of ETRN common stock, no par value (ETRN common stock)
from EQT Corporation (EQT) in exchange for approximately $46 million in cash, (ii) its purchase of 20,530,256 shares of ETRN
common stock from EQT in exchange for a promissory note (the Rate Relief Note) representing approximately $196 million in
aggregate principal amount, and (iii) its payment to EQT of cash in the amount of approximately $7 million (the Cash Amount).
ETRN used borrowings under the Intercompany Loan to fund the purchase of the Cash Shares and to pay the Cash Amount in
addition to other uses of proceeds. After giving effect to the foregoing transactions, EQT owns, directly or indirectly, 25,299,751 shares of ETRN common stock.
The interest rate for the Rate Relief Note
is fixed at 7.0% per annum and interest payments are due semi-annually in arrears commencing on the earlier of (i) March 31, 2022
and (ii) the in-service date of the Mountain Valley Pipeline. The Rate Relief Note matures on February 29, 2024. The holder of
the Rate Relief Note may accelerate amounts payable under the Rate Relief Note upon ETRN’s failure to pay debts as they become
due and other events of default. ETRN may prepay the Rate Relief Note in whole or in part at any time without premium
or penalty.
Also on March 5, 2020, EQM was assigned the
Rate Relief Note as consideration for certain commercial terms, including potential reductions in gathering fees, contemplated
in that certain Gas Gathering and Compression Agreement, dated as of February 26, 2020, by and between EQM Gathering Opco, LLC, a wholly owned subsidiary of EQM,
EQT, EQT Production Company, Rice Drilling B LLC and EQT Energy, LLC.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
EQM MIDSTREAM PARTNERS, LP
|
|
|
By:
|
EQGP Services, LLC,
|
|
|
its general partner
|
|
Date: March 5, 2020
|
By:
|
/s/ Kirk R. Oliver
|
|
Name:
|
Kirk R. Oliver
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
EQM Midstream Partners (NYSE:EQM)
Historical Stock Chart
From Jun 2024 to Jul 2024
EQM Midstream Partners (NYSE:EQM)
Historical Stock Chart
From Jul 2023 to Jul 2024