SM Energy to sell $400 million eight-year notes in Wednesday drive-by

By Paul A. Harris

Portland, Ore., Nov. 12 – SM Energy Co. plans to price a $400 million offering of eight-year senior notes (expected ratings Ba2/BB) in a quick-to-market deal on Wednesday, according to a market source.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Barclays, BBVA, Comerica and RBC Capital Markets are the co-managers.

BOSC, Capital One South Coast, Deutsche Bank Securities Inc., Goldman Sachs & Co., KeyBanc Capital Markets, Santander, Scotia Capital and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S with registration rights notes come with three years of call protection and feature a three-year 35% equity clawback.

The Denver-based oil and gas exploration and production company plans to use the proceeds to repay bank debt.

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