DENVER, Nov. 06, 2017 (GLOBE NEWSWIRE) — QEP Resources, Inc. (NYSE:QEP) (“QEP” or the “Company”) today announced that it is commencing, subject to market conditions, a $500 million offering of senior notes due 2026. QEP intends to use approximately (i) $134 million of the net proceeds from the offering to redeem its outstanding 6.80% Senior Notes due 2018 (the “Redemption”) and (ii) the remainder of the net proceeds, together with cash on hand and, if necessary, borrowings under QEP’s revolving credit facility, to fund the concurrently announced tender offers to purchase up to $361 million aggregate principal amount of its outstanding 6.80% Senior Notes due 2020 and 6.875% Senior Notes due 2021 (together, the “Target Notes”), subject to the applicable priority levels (the “Tender Offers”). If the aggregate principal amount of the Target Notes accepted for payment in the Tender Offers and the 6.80% Senior Notes due 2018 redeemed in connection with the Redemption is less than the net proceeds of this offering, QEP expects to use the remainder of the net proceeds for general corporate purposes, including the repayment or redemption of outstanding indebtedness.
Wells Fargo Securities, LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and US Bancorp Investments, Inc. are acting as joint book-running managers of the offering. The offering is being made under an effective registration statement on Form S-3 previously filed by QEP with the Securities and Exchange Commission (the “SEC”) and only by means of a prospectus supplement and accompanying base prospectus, copies of which may be obtained by contacting: Wells Fargo Securities, LLC at 608 2nd Ave S, Suite 1000, Minneapolis, MN 55402, Attention: WFS Customer Service, or by calling (800) 645-3751, Opt 5.
When available, an electronic copy of the preliminary prospectus supplement, prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission’s website at http://www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About QEP Resources, Inc.
QEP Resources, Inc. (NYSE:QEP) is an independent crude oil and natural gas exploration and production company focused in two regions of the United States: the Northern Region (primarily in North Dakota and Utah) and the Southern Region (primarily in Texas and Louisiana).