SM Energy Company Announces Cash Tender Offer its 6.125% Senior Notes Due 2022 and up to $130.0 Million Aggregate Principal Amount of its 5.000% Senior Notes Due 2024 and Related Solicitation of Consent
June 09, 2021 at 07:30 am EDT
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SM Energy Company announced that it has commenced cash tender offers to purchase (the "Offers") (i) any and all of its outstanding 6.125% Senior Notes due 2022 (CUSIP No. 78454L AK6), and (ii) up to an aggregate principal amount not to exceed $130,000,000, of its outstanding 5.000% Senior Notes due 2024 (CUSIP No. 78454L AH3) (the "2024 Notes" and, together with the 2022 Notes, the "Notes"), subject to the terms and conditions in the Offer to Purchase and Consent Solicitation Statement dated June 9, 2021 (as it may be amended or supplemented from time to time, the "Offer to Purchase"), and related solicitation of consents (the "Consent Solicitation" and, together with the Offers, the "Tender Offer") from holders of the 2022 Notes to certain proposed amendments to the indenture governing the 2022 Notes (the "Consents"). The Notes tendered at or prior to the Early Tender Date will be accepted for purchase with priority over the Notes tendered after the Early Tender Date, but at or prior to the Expiration Date. Acceptance for tenders of the 2024 Notes may be subject to proration if the aggregate principal amount of the 2024 Notes validly tendered and not validly withdrawn is greater than the Tender Cap. Furthermore, if the Tender Offer to purchase 2024 Notes is fully subscribed as of the Early Tender Date, holders who validly tender 2024 Notes after the Early Tender Date will not have any of their 2024 Notes accepted for purchase and there will be no Final Settlement Date. Holders tendering their 2022 Notes will be deemed to have delivered their Consent to certain proposed amendments to the indentures governing the 2022 Notes, which will eliminate certain covenants with respect to the 2022 Notes, and certain events of default, amend certain other provisions with respect to the 2022 Notes, and reduce the minimum notice of optional redemption required to be given to holders of the 2022 Notes from 30 to 3 business days (the "Proposed Amendments"). Following receipt of Consents of at least a majority in aggregate principal amount of the outstanding 2022 Notes, SM Energy will execute supplemental indentures effecting the Proposed Amendments with respect to such 2022 Notes.
SM Energy Company s an independent energy company. The Company is engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquid (NGL) in the state of Texas. The Companyâs asset portfolio is comprised of assets in the Midland Basin of West Texas and in the Maverick Basin of South Texas. The Companyâs Midland Basin assets are located in the Permian Basin in West Texas is comprised of approximately 110,000 net acres and include its RockStar assets in Howard and Martin Counties, Texas, its Sweetie Peck assets in Upton and Midland Counties, and Klondike assets in Dawson and northern Martin counties (Midland Basin). Its South Texas assets are comprised of approximately 155,000 net acres located in Dimmit and Webb Counties, Texas (South Texas). The Companyâs operations in South Texas are focused on production from the Eagle Ford shale formation and Austin Chalk formation, and further development of the Austin Chalk formation.
SM Energy Company Announces Cash Tender Offer its 6.125% Senior Notes Due 2022 and up to $130.0 Million Aggregate Principal Amount of its 5.000% Senior Notes Due 2024 and Related Solicitation of Consent