Southwestern Energy restates revolver with $2 billion initial commitment

By Wendy Van Sickle

Columbus, Ohio, April 12 – Southwestern Energy Co. amended and restated its credit agreement with JPMorgan Chase Bank, NA as administrative agent on April 8 to provided for an up to $3.5 billion five-year revolver, according to an 8-K filing with the Securities and Exchange Commission.

The elected commitment amount is initially $2 billion.

Some features of the facility depend on whether Southwestern has obtained zero, one or two investment-grade ratings.

Initially, the obligations under the credit agreement are guaranteed by some of Southwestern’s subsidiaries, and the facility is secured by substantially all of the assets owned by the company and the guarantors.

If the company receives an investment-grade rating from either S&P or Moody’s, fully repays its term loan obligations and delivers a certification to the administrative agent, the guarantors may be released from their guarantees, the facility will no longer be subject to a borrowing base and some title and collateral-related covenants will no longer be applicable.

Borrowings bear interest at SOFR plus 175 basis points to 275 bps, depending on usage, plus a credit-spread adjustment of 10 bps. The commitment fee ranges from 37.5 bps to 50 bps. The interest margin and commitment fee may decrease upon the borrower’s achievement of investment-grade ratings.

JPMorgan Chase Bank, NA, BofA Securities, Inc., Citibank NA, Mizuho Bank, Ltd., MUFG Bank, Ltd., PNC Capital Markets LLC, Regions Bank, RBC Capital Markets LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC are the joint lead arrangers and bookrunners.

Bank of America, NA, Citibank, Mizuho, MUFG, PNC, Regions, Royal Bank of Canada, Truist and Wells Fargo Bank, NA are the co-syndication agents.

Southwestern Energy is a Spring, Tex.-based producer of natural gas and natural gas liquids.

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