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.
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.
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