Southwestern Energy gives early results of oversubscribed tender offer

Chicago, Dec. 7 – Southwestern Energy Co. announced the early results of its capped cash tender offers for two series of notes, according to a press release.

The company increased the amount it will accept, now $300 million principal amount of notes from $250 million of notes.

All of the accepted notes will come from the first of the two series that were part of the offer.

The company received tenders for $400,795,000 of the $689,454,000 outstanding 4.95% senior notes due 2025 (Cusip: 845467AL3).

The company will accept $300 million, as stated above, from the series.

Southwestern Energy is paying $1,105 per $1,000 note.

The company is not accepting any of the $309,681,000 tendered notes from the $440,007,000 outstanding 7¾% senior notes due 2027 (Cusip: 845467AN9).

Noteholders would have received $1,090 per $1,000 note in the offer.

There was a $100 million subcap for the 2027 notes.

Noteholders who tendered by the early deadline are receiving an early tender premium, included in the total consideration, of $30 per note.

Noted in the press release, due to a ratings downgrade by S&P Global Ratings, the actual coupon currently on the 2025 notes is 6.2%, which coupon would decrease to 5.95% after January if an upgrade for which the company is on watch from S&P is received.

The company said that all of the 2025 notes validly tendered by the early tender time at 5 p.m. ET on Dec. 7 will be prorated with any 2025 notes validly tendered after the early tender time but before the expiration of the offer at 5 p.m. ET on Dec. 29.

RBC Capital Markets, LLC (877 381-2099 or 212 618-7843) and Wells Fargo Securities, LLC (866 309-6316 or 704 410-4756) are the lead dealer managers.

BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC and MUFG Securities Americas Inc. are co-dealer managers.

Global Bondholder Services Corp. (866 807-2200 or contact@gbsc-usa.com) is the tender agent and information agent.

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

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