Southwestern Energy driving by with $1.15 billion 10-year notes; initial talk 5%-5¼%

By Paul A. Harris

Portland, Ore., Dec. 8 – Southwestern Energy Co. plans to price a $1.15 billion public offering of senior notes due 2032 in a Wednesday drive-by, according to market sources.

Initial guidance has the notes coming to yield 5% to 5¼%.

J.P. Morgan Securities LLC (lead), BofA Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, Wells Fargo Securities, LLC, Mizuho Securities USA Inc., MUFG, PNC Capital Markets LLC, Regions Securities LLC and Truist Securities Inc. are the joint bookrunners.

Senior co-managers are CIBC World Markets Corp., Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and SMBC Nikko Securities America Inc.

Co-managers are Credit Agricole CIB, Fifth Third Securities Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC.

The 10-year notes come with five years of call protection.

The Spring, Tex.-based natural gas exploration and production company plans to use the proceeds plus proceeds from its term loan, as well as revolver borrowings and cash on hand to fund the cash portion of the acquisition of GEP Haynesville, LLC, also to fund the previously announced tender offers of certain series of outstanding senior notes and to pay down its existing revolver.

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