Southwestern Energy extends early tender date in offer for three notes

By Susanna Moon

Chicago, July 14 – Southwestern Energy Co. said it extended the early tender deadline in the offers to purchase three series of notes.

Holders may now tender until 5 p.m. ET on July 15 to receive the total payment, which includes an early tender premium of $30 per $1,000 principal amount, according to a company update.

The company also said it has now met the financing condition to the tender offers.

As announced June 29, Southwestern is tendering for three series of notes for up to a maximum purchase price of $750 million.

The total purchase price for each $1,000 principal amount will be as follows, with the notes listed in order of priority acceptance level:

• $350 million 3.3% senior notes due 2018 with a total purchase price of $1,026.25;

• $600 million 7˝% senior notes due 2018 with a total purchase price of $1,063.75; and

• $850 million 4.05% senior notes due 2020 with a total purchase price of $975.00 and offer sub-cap of $50 million.

Holders who tender after the early deadline will receive the total amount less the early premium.

The company also will pay accrued interest to but excluding the settlement date, which is expected to be July 18 for early tendered notes and July 28 for remaining tenders.

The tender offers will end at midnight ET on July 27.

Tendered notes may no longer be withdrawn as of the original early tender date of July 13.

The company said it reserves the right to raise the offer cap or the sub-cap.

Notes tendered before the early tender date will be accepted for purchase before those tendered after the early deadline, even if the notes tendered after the early deadline have a higher acceptance priority level than those tendered before the early tender date, the release noted.

The offers are not contingent upon the tender of any minimum principal amount of notes of any series; however, they are conditioned on the company’s concurrent offering of common stock with proceeds of at least $900 million.

The purpose of the tender offers is to retire debt, the company previously noted.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and MUFG (877 744-4532 or 212 405-7481) are the lead dealer managers. D.F. King & Co., Inc. (866 406-2283, 212 269-5550 or SWN@dfking.com) is the tender agent and information agent.

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

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