SM Energy prices $500M public offering of senior notes due 2025

SM Energy Co. (NYSE: SM) has priced an offering of $500 million aggregate principal amount of its 5.625% senior unsecured notes due 2025. The notes will be issued at par. The offering is expected to close on May 21.

The company intends to use the net proceeds from the offering to fund the concurrent tender offer announced May 7 to purchase any and all of its outstanding 6.625% senior notes due 2019, repay outstanding borrowings under its credit facility, and for general corporate purposes. Wells Fargo Securities, BofA Merrill Lynch, JP Morgan, Barclays, BBVA, and RBC Capital Markets are acting as joint book-running managers for the offering.

SM Energy also intends to offer $400,000,000 in aggregate principal amount of a series of senior unsecured notes due 2025. The company plans to use the net proceeds from the offering to fund the concurrent tender offer announced May 7 to purchase any and all of its outstanding 6.625% senior notes due 2019, repay outstanding borrowings under its credit facility, and for general corporate purposes. Wells Fargo Securities, BofA Merrill Lynch, J.P. Morgan, Barclays, BBVA, and RBC Capital Markets are acting as joint book-running managers for the offering.

Additionally, SM Energy has begun a cash tender offer for any and all of the $350,000,000 in aggregate principal amount outstanding of its 6.625% senior notes due 2019 (CUSIP: 78454LAB6) and a related solicitation of consents to certain proposed amendments to the indenture governing the notes. The offer will expire at 11:59 P.M., New York City time, on June 4.

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