Southwestern Energy to repay $375 million of term loan via new stock

By Tali Rackner

Norfolk, Va., June 29 – Southwestern Energy Co. plans to repay $375 million of its $750 million term loan with the proceeds from an upsized offering of 86 million shares of common stock, according to a press release.

The term loan was entered into in November 2015 under the amended and restated term loan credit agreement with Bank of America, NA as administrative agent.

Remaining net proceeds, together with cash on hand, will be used to fund Southwestern Energy's tender offers to purchase, for cash, up to $750 million of its 3.3% senior notes due 2018, 7½% senior notes due 2018 and 4.05% senior notes due 2020.

The company may use the remainder for general corporate purposes, including the repayment of additional debt outstanding under the 2015 term loan, the completion of wells already drilled or the funding of other capital projects

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

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