Southwestern offers notes to cover Haynesville purchase
Texas-based natural gas producer Southwestern Energy Co. said December 9 it made a note offering to generate proceeds to help pay for the $1.85bn acquisition of a Haynesville shale natural gas firm.
Southwestern said it offered $1.15bn in 4.75% senior notes due 2032 that will be sold at face value. Closing is expected on December 22.
The company said it would use the net proceeds to fund the cash portion of the acquisition of GEP Haynesville, announced in November.
Southwestern put down around $1.85bn to acquire GEP in a deal that is expected to close by the end of the year. The Texas-based company said the purchase would put its production at 4.7bn ft3/d equivalent per day, of which 65% is expected in the form of natural gas..