Fitch assigns Southwestern Energy notes BB

Fitch Ratings said it assigned a BB/RR4 rating to Southwestern Energy Co.'s new $350 million of senior unsecured notes.

Proceeds, along with $158 million of proceeds from the follow-on equity offering, will be used to refinance the 8 7/8% notes at Montage Resource Corp., and for related transaction fees following close of the announced acquisition expected fourth quarter 2020.

“Fitch views the stock-for-stock nature of the Montage acquisition and the expected partial notes retirement through equity proceeds positively but believes it is relatively neutral to the credit profile,” Fitch said in a press release.

The outlook is negative.

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