Southwestern Energy to launch $550 million term loan on Tuesday

By Sara Rosenberg

New York, Nov. 29 – Southwestern Energy Co. will hold a lender call at 11 a.m. ET on Tuesday to launch a $550 million term loan (Baa2//BBB-), according to a market source.

JPMorgan Chase Bank, BofA Securities Inc., Citigroup, RBC and Wells Fargo provided the debt commitment.

Price talk on the term loan is SOFR+CSA plus 275 basis points to 300 bps with a 0.5% floor and an original issue discount of 99.5, the source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Dec. 7, the source added.

Proceeds will be used to help fund the acquisition of GEP Haynesville LLC for $1.325 billion in cash and about $525 million in Southwestern common shares.

Closing is expected this year, subject to regulatory approvals and customary conditions.

Southwestern Energy is a Spring, Tex.-based producer of natural gas and natural gas liquids. GEP Haynesville is a The Woodlands, Tex.-based energy company.

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