QEP Resources Announces Pricing Of $650 Million Of 5.250% Senior Notes Due 2023
DENVER, Sept. 5, 2012 /PRNewswire/ -- QEP Resources, Inc. (NYSE: QEP) today announced that it has priced an underwritten public offering of $650 million of 5.250% Senior Notes due May 1, 2023. The notes are being offered to fund a portion of the consideration to acquire producing and undeveloped oil and gas properties in North Dakota's Williams and McKenzie counties. The oil and gas properties will be acquired pursuant to two related purchase and sale agreements. Prior to the consummation of the transactions contemplated by the purchase and sale agreements, the net proceeds from this offering will be held by QEP Resources and a portion of those proceeds will be used to temporarily pay down any outstanding amounts under QEP Resources' revolving credit facility. If neither of the transactions contemplated by the purchase and sale agreements close on or prior to December 31, 2012, or if both purchase and sale agreements are terminated at any time prior thereto, QEP Resources will be required to redeem all of the notes at a redemption price equal to 100% of their issue price, plus accrued and unpaid interest to the date of redemption.
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Interest is payable on May 1 and November 1 of each year. The first interest payment is due on November 1, 2012, for interest accrued from closing to that date. The offering is expected to close on September 12, 2012.
J.P. Morgan Securities LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Wells Fargo Securities, LLC, and Citigroup Global Markets, Inc. are acting as joint book-running managers of the offering. The offering will be made only by means of a prospectus supplement and accompanying base prospectus, copies of which may be obtained by contacting J.P. Morgan Securities LLC at 383 Madison Avenue, 3rd Floor, New York, New York 10179, Attention: Syndicate Desk, or by calling (800) 245-8812.
When available, an electronic copy of the 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. The offering is being made pursuant to an effective registration statement on Form S-3 previously filed by QEP Resources with the Securities and Exchange Commission.
About QEP Resources
QEP Resources, Inc. (NYSE: QEP) is a leading independent natural gas and crude oil exploration and production company focused in two major regions: the Northern Region (primarily in the Rockies) and the Southern Region (primarily Oklahoma, Louisiana, and the Texas Panhandle) of the United States. QEP Resources also gathers, compresses, treats, processes and stores natural gas. For more information, visit QEP Resources' website at: www.qepres.com.
FORWARD-LOOKING STATEMENTS. This release includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements regarding the closing of the notes offering and the use of proceeds from such offering. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, but not limited to: general economic conditions, including the performance of the financial markets and interest rates; changes in government regulations; terrorist acts; mechanical and other risks associated with oil and gas operations; the volatility of natural gas, oil and NGL prices; weather; and other risks discussed in the Company's periodic filings with the Securities and Exchange Commission, including the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2011. QEP Resources undertakes no obligation to publicly correct or update the forward-looking statements. All such statements are expressly qualified by this cautionary statement.
SOURCE QEP Resources, Inc.
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