Southwestern Energy Co. (NYSE: SWN) is commencing, subject to market conditions, a registered underwritten public offering of $1.15 billion aggregate principal amount of senior notes, consisting of a series of senior, unsecured notes due 2026 and a series of senior, unsecured notes due 2027.
The company intends to use approximately $327 million of the net proceeds from the offering to repay in full and terminate its 2015 Amended and Restated Term Loan with various lenders and Bank of America NA, as administrative agent and lender, and the remaining net proceeds of the offering, together with cash on hand, to fund the concurrently announced tender offers to purchase for cash, subject to certain conditions, (i) any and all of the company's 4.05% senior notes due 2020 and (ii) subject to certain limits, up to $100 million of each of the company's 4.10% senior notes due 2022 and 4.95% senior notes due 2025 subject to the applicable priority levels and caps. If the tender offers are not consummated, or the aggregate amount of securities tendered in the tender offers and accepted for payment is less than the net proceeds of the offering dedicated for that purpose, the company will use the remainder of the net proceeds for other repayments of indebtedness, subject to the terms of the company's credit facilities.
JP Morgan Securities LLC; Citigroup Global Markets Inc.; MUFG Securities Americas Inc.; BofA Merrill Lynch; Credit Agricole Securities (USA) Inc.; Mizuho Securities USA LLC; RBC Capital Markets, LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the Offering.
Southwestern Energy Company is an independent energy company whose wholly owned subsidiaries are engaged in natural gas and oil exploration, development and production, natural gas gathering and marketing.