Published on 8/16/2021 in the Prospect News High Yield Daily.
New Issue: Southwestern Energy sells upsized $1.2 billion 8.5-year notes at par to yield 5 3/8%
By Paul A. Harris
Portland, Ore., Aug. 16 – Southwestern Energy Co. priced an upsized $1.2 billion issue of 8.5-year senior notes (Ba3/BB-/BB) at par to yield 5 3/8% in a Monday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed at the tight end of the 5 3/8% to 5½% yield talk. Initial guidance was in the mid-5% area.
The deal was heard to play to $2.3 billion of orders, a trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Agricole CIB, MUFG, Mizuho Securities USA Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Truist Securities Inc., Wells Fargo Securities LLC and Regions Securities LLC.
The Houston-based oil and gas exploration, development and production company plans to use the proceeds to fund the tender/redemption for its senior notes due 2026 and the tender for up to $25 million of its senior notes due 2025, as well as to pay down its revolver, with the remainder, if any, to repay other debt or for general corporate purposes.
| Issuer: | Southwestern Energy Co.
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| Amount: | $1.2 billion, increased from $1 billion
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| Maturity: | March 15, 2030
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| Securities: | Senior notes
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Agricole CIB, MUFG, Mizuho Securities USA Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Truist Securities Inc., Wells Fargo Securities LLC and Regions Securities LLC
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| Senior co-managers: | CIBC World Markets Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and SMBC Nikko Securities America Inc.
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| Co-managers: | Citizens Capital Markets Inc., Fifth Third Securities Inc. and Goldman Sachs & Co. LLC
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| Coupon: | 5 3/8%
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| Price: | Par
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| Yield: | 5 3/8%
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| First call: | March 15, 2025 at 102.688
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| Trade date: | Aug. 16
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| Settlement date: | Aug. 30
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| Ratings: | Moody's: Ba3
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| S&P: BB-
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| Fitch: BB
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| Distribution: | SEC registered
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| Price talk: | 5 3/8% to 5½%
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| Marketing: | Drive-by
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