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”.
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.