Southwestern accepts $1.16 million more tendered 2026 notes, calls rest

By Marisa Wong

Los Angeles, Sept. 16 – Southwestern Energy Co. purchased an additional $1,155,000 of 7½% senior notes due 2026 tendered after the early settlement date of its previously announced tender offer for any and all of the 2026 notes, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The company launched tender offers on Aug. 16 to purchase any and all of its $617,622,000 of outstanding 2026 notes (Cusip: 845467AM1) and up to $167 million of its $856,454,000 outstanding 4.95% senior notes due 2025 (Cusip: 845467AL3). Due to a ratings downgrade by S&P Global Ratings, the actual coupon currently on the 2025 notes is 6.45%.

The offers expired at 11:59 p.m. ET on Sept. 13.

On Sept. 14, the company redeemed in full the remaining outstanding principal amount of 2026 notes, according to Thursday’s 8-K filing.

Other results of the offers were not disclosed in the filing.

As previously announced, the company offered to purchase the 2026 notes at $1,060 per $1,000 note and the 2025 notes at $1,095 per $1,000 note.

The considerations included an early tender premium of $30 per note for holders who tendered by the early deadline at 5 p.m. ET on Aug. 27. The early deadline was also the withdrawal deadline.

Tenders for the 2025 notes could be prorated.

The company also solicited consents for the 2026 notes to eliminate some of the restrictive covenants and some events of default and to reduce the optional redemption notice period under the indenture governing the notes. The company needs consents from holders representing a majority of the outstanding principal amount of notes.

Holders could not tender their notes without delivering consents, and vice versa.

Early settlement was expected for Aug. 31. Final settlement was slated for Sept. 15.

The tender offers and the consent solicitation were conditioned on the company receiving proceeds from a substantially concurrent debt financing of at least $1 billion.

The company expected it would need about $684 million to pay the total consideration for the offers.

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) and BofA Securities, Inc. (980 388-3646) are the lead dealer managers and lead solicitation agents.

Credit Agricole Securities (USA) Inc., MUFG Securities Americas Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are co-dealer managers and co-solicitation agents.

Global Bondholder Services Corp. (866 807-2200, contact@gbsc-usa.com) is the tender agent and information agent.

Southwestern Energy is a Houston-based natural gas and oil company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.