Southwestern Energy enters $750 million three-year term loan agreement

By Tali Rackner

Norfolk, Va., Nov. 17 – Southwestern Energy Co. entered into a $750 million three-year unsecured term loan credit agreement on Tuesday with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch is the lead bookrunner and is a joint lead arranger with BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp., Bank of Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo Securities, LLC.

The current interest rate is Libor plus 137.5 basis points. The spread over Libor is based on the company’s credit rating.

Southwestern Energy borrowed the full amount on Tuesday.

Proceeds were used to pay down balances under its existing credit facility and commercial paper program.

The facility contains a financial covenant that requires the company to maintain a maximum debt to capitalization ratio of 0.6 times.

Southwestern Energy is a Houston-based natural gas and oil company.

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