Current SWN Stock Info

Proceeds go toward paying debt, completing DUCs, capital projects

Southwestern Energy Company (ticker: SWN) today announced the completion of its previously announced underwritten public offering of 98,900,000 shares of its common stock, with net proceeds from the offering to the company totaling approximately $1,247 million after underwriting discounts and offering expenses.

The company said the net proceeds from the offering will be used to repay $375.0 million of the $750.0 million term loan Southwestern Energy entered into in November 2015 under the Amended and Restated Term Loan Credit Agreement with various lenders and Bank of America, N.A., as administrative agent and lender.

The remaining net proceeds of the offering will be used to fund Southwestern Energy’s tender offers to purchase for cash, subject to certain conditions, up to $750.0 million aggregate purchase price, excluding accrued interest, of its 3.30% senior notes due 2018, 7.50% senior notes due 2018 and 4.05% senior notes due 2020, and for general corporate purposes, including the repayment of additional indebtedness outstanding under the 2015 term loan, the completion of wells already drilled or the funding of other capital projects.

If the tender offers are not consummated, or the aggregate amount of securities tendered in the tender offers and accepted for payment is less than the net proceeds of the common stock offering dedicated for that purpose, Southwestern Energy may use the remainder of those proceeds for general corporate purposes, including the repayment of additional indebtedness outstanding under the 2015 term loan, the completion of wells already drilled or the funding of other capital projects.  Payment of the $375.0 million of the 2015 term loan has the effect of extending its maturity to December 14, 2020.

Southwestern Energy's liquidity prior to July 6. Today's deal will further strengthen the company's balance sheet.

Southwestern Energy’s liquidity prior to July 6. Today’s deal will further strengthen the company’s balance sheet.


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