QEP Resources Announces Pricing Of $650 Million Of 5.250% Senior Notes Due
DENVER, Sept. 5, 2012
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
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, 3^rd 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.
Contact: Investors, Greg Bensen, Director, Investor Relations, +1-303-405-6665
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