SM Energy buys back $46.3 million senior notes in Q1 for $29.9 million

By Susanna Moon

Chicago, May 4 – SM Energy Co. repurchased a total of $46.3 million principal amount of senior notes in the open market during the first quarter of 2016 for $29.9 million, excluding interest, according to a 10-Q filing with the Securities and Exchange Commission.

Of the $29.9 million settlement amount, $10 million was for transactions that were executed during the first quarter but the settlement occurred after March 31, the filing noted.

The company said it recorded a net gain on extinguishment of debt related to the repurchase of some of three note series of about $15.7 million for the quarter ended March 31.

This amount includes a gain of $16.4 million associated with the discount realized upon repurchase, which was partially offset by about $700,000 for the acceleration of unamortized deferred financing costs, the filing added.

The repurchased notes were canceled.

As of March 31, there remained outstanding $346,955,000 of 6½% senior notes due 2021, $561,796,000 of 6 1/8% senior notes due 2022 and $394,985,000 of 6½% senior notes due 2023.

SM Energy is a Denver-based independent energy company.

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