Southwestern Energy Company (NYSE:SWN) Initiates Public Offering Of Senior Notes


Southwestern Energy Company (NYSE:SWN) reported that it is starting, depending on market conditions, a public offering of $1.15 billion total principal amount of senior notes, comprising of a series of the “2026 Notes” and a series of the “2027 Notes” and, together with the “Notes”.

The details

Southwestern Energy plans to use net proceeds of around $327 million from the announced offering to recompense in full and close its 2015 term loan with numerous lenders and Bank of America, N.A., as lender and administrative agent, and the remaining net proceeds, along with cash on hand, to support the concurrently reported tender offers to buy for cash, subject to specified conditions, (i) any and all of the firm’s 4.05% the “2020 Notes” and (ii) subject to specified limits, up to $100 million of each of the firm’s 4.10% Senior Notes to be paid in 2022 and 4.95% Senior Notes payable in 2025, subject to the “Tender Offers”.

If these offers are not consummated, or the total amount of equities tendered in these offers and approved for payment falls less than the net proceeds of the public offering dedicated for that objective, Southwestern Energy will use the remaining of the net proceeds for other recompense of indebtedness, dependent on the terms of the firm’s credit facilities.

The list of joint book-running managers for the public offering include J.P. Morgan Securities LLC, MUFG Securities Americas Inc., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., RBC Capital Markets, LLC, Wells Fargo Securities, LLC and Mizuho Securities USA LLC.

In the last trading session, the stock price of Southwestern jumped more than 4% to close the day at $5.41. The gains came at a share volume of 16.88 million compared to average share volume of 15.39 million. After the recent gains, the market cap of firm stands around $2.75 billion.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.