SM Energy Company ("SM Energy") has announced the pricing of an upsized offering of $1.0 billion aggregate principal amount of 6.625% senior notes due 2034. This offering represents a significant increase from the $750 million principal amount of its 8.375% senior notes due 2028 that the company previously announced it intended to tender for cash.
The notes are being issued at par and the offering is expected to close on March 9, 2026, subject to customary closing conditions. The company plans to use the net proceeds from this offering to fund its tender offer for its outstanding 2028 notes and for general corporate purposes, including additional repayment of the company’s 2028 notes.
It's important to note that the notes offered will not be registered under the Securities Act of 1933, as amended, and will be issued pursuant to an exemption therefrom. The notes were being offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act.
This press release does not constitute an offer to sell, a solicitation to buy, or an offer to purchase or sell any securities. Additionally, it is not an offer to purchase or a notice to redeem the 2028 notes. Following these announcements, the company's shares moved -0.71%, and are now trading at a price of $18.21. For the full picture, make sure to review SM Energy Co's 8-K report.
