Southwestern Energy Company (NYSE:SWN) reported the completion of its previously stated public offering of $1.15 billion total principal amount of senior notes, comprising of $650 million total principal amount of 7.5% senior notes payable 2026 and $500 million total principal amount of its 7.75% senior notes payable 2027 with net proceeds from this offering totaling around $1,133 million after offering expenses and underwriting discounts.
The Notes were offered to the public at a price of 100% of their face value for the “2026 Notes” and 100% of their face value for the “2027 Notes.” Southwestern reported that the proceeds from the public offering were used to recompense in full and cancel the firm’s Restated and Amended Term Loan Credit deal with Bank of America, N.A. and various lenders, and the remaining net proceeds from the public offering, together with available cash, will be used to fund the firm’s previously reported tender offers and consent solicitation.
Joint book-running managers for the reported offering are J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC, BofA Merrill Lynch, Wells Fargo Securities, LLC and RBC Capital Markets, LLC.
Earlier, the company reported preliminary results of the previously posted cash tender offers to purchase any and all of the firm’s 4.05% senior notes payable 2020 and an amount of the firm’s 4.10% senior notes payable 2022 up to a sum equal to $800 million minus the total purchase price compensated for the 2020 Notes approved for purchase, discounting accrued interest.
In the last trading session, the stock price of Southwestern gained more than 1% to close the day at $6.12. The gains came at a share volume of 18.26 million compared to average share volume of 15.54 million. After the recent gains, the market cap of firm was $3.12 billion.
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