By Andrea Heisinger
New York, Feb. 29 - Southwestern Energy Co. priced an upsized $1 billion of 4.1% 10-year senior notes on Wednesday at a spread of Treasuries plus 212.5 basis points, a source who worked on the deal said.
The size of the trade was increased from $700 million. The notes were priced tighter than guidance in the mid-to-high 200 bps area, the source said.
The notes (Baa3/BBB-/BBB-) were priced at 99.877 to yield 4.115%.
There is a make-whole call at Treasuries plus 35 bps and a change-of-control put at 101%.
The deal was done under Rule 144A and Regulation S.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to repay debt under a credit facility and for general corporate purposes.
The natural gas and crude oil exploration and production company is based in Houston.
| Issuer: | Southwestern Energy Co.
|
| Issue: | Senior notes
|
| Amount: | $1 billion, upsized from $700 million
|
| Maturity: | March 15, 2022
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Coupon: | 4.1%
|
| Price: | 99.877
|
| Yield: | 4.115%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Change-of-control put: | 101%
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | Feb. 29
|
| Settlement date: | March 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | Mid-to-high 200 bps area
|
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