SM Energy Company (“SM Energy”) (NYSE: SM) announced today that it
intends, subject to market and other conditions, to offer $500.0 million
in aggregate principal amount of a series of senior unsecured notes due
2026 (the “Notes”). SM Energy intends to use the net proceeds from the
offering to pay a portion of the purchase price for its recently
announced acquisition of all of the outstanding membership interests of
an entity holding undeveloped leasehold interests, producing wells and
associated infrastructure assets in the Midland Basin of west Texas from
Rock Oil Holdings LLC, and for general corporate purposes. If this
acquisition does not close, SM Energy intends to use the net proceeds
for general corporate purposes.
BofA Merrill Lynch, J.P. Morgan and Wells Fargo Securities are acting as
joint book-running managers for the offering. The Notes are being
offered and will be sold pursuant to an effective shelf registration
statement that was previously filed with the Securities and Exchange
Commission. This offering is being made only by means of a prospectus
dated August 8, 2016 and related prospectus supplement dated September
7, 2016. Before you invest, you should read the preliminary prospectus
supplement and accompanying base prospectus in that registration
statement for more complete information about this offering. When
available, copies of these documents may be obtained from any of the
underwriters by contacting:
BofA Merrill Lynch
NC1-004-03-43
200 North College Street, 3rd
floor
Charlotte, NC 28255-0001
Attn: Prospectus Department
E-mail:
dg.prospectus_requests@baml.com
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155
Long Island Avenue
Edgewood, NY 11717
Attn: Post-Sale
Fulfillment
E-mail: prospectus-eq_fi@jpmchase.com
Wells Fargo Securities, LLC
608 2nd Ave. S, Suite 1000
Minneapolis,
MN 55402
Attn: WFS Customer Service
E-mail: wfscustomerservice@wellsfargo.com
You may also obtain these documents free of charge when they are
available by visiting the Securities and Exchange Commission’s website
at www.sec.gov.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities described herein, nor
shall there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
INFORMATION ON FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements as defined
under the federal securities laws, including statements regarding the
intended use of offering proceeds and other aspects of the Notes
offering. Although management believes that expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to be correct.
In addition, these statements are subject to certain risks,
uncertainties and other assumptions that are difficult to predict and
may be beyond our control, including market conditions, customary
offering closing conditions and other factors described in the
prospectus and accompanying prospectus supplement for the offering. If
one or more of these risks or uncertainties materialize, or if
underlying assumptions prove incorrect, the Company’s actual results may
vary materially from what management anticipated, estimated, projected
or expected.
Investors are encouraged to closely consider the disclosures and risk
factors contained in the Company’s annual and quarterly reports filed
from time to time with the Securities and Exchange Commission and in the
prospectus and related prospectus supplement. The statements
herein speak only as of the date of this press release. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
ABOUT THE COMPANY
SM Energy Company is an independent energy company engaged in the
acquisition, exploration, development, and production of crude oil,
natural gas, and natural gas liquids in onshore North America. SM Energy
routinely posts important information about the Company on its website.
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