By Aleesia Forni
Virginia Beach, Jan. 20 – Southwestern Energy Co. priced $2.2 billion of senior notes (Baa3/BBB-/) in three tranches on Tuesday, according to a market source.
The company priced $350 million of 3.3% three-year notes with a spread of 248 basis points over Treasuries.
There was also $850 million of 4.05% notes due 2020 sold at 278 bps over Treasuries.
Finally, $1 billion of 4.95% notes due 2025 sold at 318 bps over Treasuries.
All three tranches priced tighter than talk.
The bookrunners include BofA Merrill Lynch, RBS Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA, Credit Agricole, MUFG, Mizuho Securities, RBC Capital Markets LLC and SMBC Nikko.
Proceeds will be used to repay amounts outstanding under the company’s bridge facility and to repay a portion of its revolving credit facility.
Southwestern Energy is a Houston-based independent natural gas and oil company.
| Issuer: | Southwestern Energy Co.
|
| Issue: | Senior notes
|
| Amount: | $2.2 billion
|
| Bookrunners: | BofA Merrill Lynch, RBS Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA, Credit Agricole, MUFG, Mizuho Securities, RBC Capital Markets LLC, SMBC Nikko
|
| Trade date: | Jan. 20
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $350 million
|
| Maturity: | 2018
|
| Coupon: | 3.3%
|
| Spread: | Treasuries plus 248 bps
|
| Price talk: | 255 bps area, tightened from high-200 bps area
|
|
|
| Five-year notes
|
| Amount: | $850 million
|
| Maturity: | Jan. 23, 2020
|
| Coupon: | 4.05%
|
| Spread: | Treasuries plus 278 bps
|
| Price talk: | 285 bps area, tightened from low-300 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 23, 2025
|
| Coupon: | 4.95%
|
| Spread: | Treasuries plus 318 bps
|
| Price talk: | 325 bps area, tightened from mid-300 bps area
|
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