Southwestern Energy Co. launched a cash tender offer to purchase up to $900 million of its senior notes, to be funded with proceeds from its recent Fayetteville Shale asset sale.
The notes included in the offer are 4.10% senior notes due 2022, 4.05% senior notes due 2020, 4.95% senior notes due 2025, 7.50% senior notes due 2026 and 7.75% senior notes due 2027, according to a Sept. 4 news release.
Southwestern will pay $950 per $1,000 for the 2022 notes, $975 for the 2020 notes, $960 for the 2025 notes, $1,002.50 for the 2026 notes and $1,010 for the 2027 notes. Holders of notes validly tendered before 5 p.m. ET on Sept. 17 will receive an early tender premium of $50, applicable to all of the series of notes.
The tender offers will expire at 11:59 p.m. ET on Oct. 1, unless extended by the company.
Southwestern recently announced an exit from the Fayetteville Shale business it pioneered in Arkansas and Oklahoma with an agreement to sell its exploration and production and associated midstream gathering assets to a private-equity-backed company for $1.87 billion in cash. The company plans to concentrate its focus on its Appalachian shale business after the sale.