SM Energy Company ("SM Energy") (NYSE: SM) has announced the early results of its cash tender offer to purchase up to $750,000,000 aggregate principal amount of the outstanding 8.375% senior notes due 2028. However, the company has increased the maximum aggregate principal amount to $1,000,000,000. As of the early tender date, $783,605,000 of the notes had been tendered, representing 58.04% of the outstanding principal amount.
The company has amended the maximum tender amount to accept up to $1,000,000,000 principal amount of notes validly tendered and not validly withdrawn at or prior to the early tender date. Holders who validly tendered their notes at or prior to the early tender date will receive the "total consideration" of $1,031.75 for each $1,000 principal amount of notes accepted for purchase, which includes the "early tender premium" of $50 for each $1,000 principal amount of notes.
The settlement date with respect to all notes validly tendered at or prior to the early tender date and not validly withdrawn and accepted for purchase is March 19, 2026. Since the tender offer is not fully subscribed as of the early settlement date, the settlement date with respect to all notes validly tendered after the early tender date is expected to be on the second business day after the expiration date, or promptly thereafter.
The tender offer will expire at 5:00 p.m., New York City time, on April 1, 2026, unless extended. The completion of the tender offer is subject to a number of conditions as set forth in the offer to purchase.
SM Energy has retained BofA Securities, Inc. as dealer manager and solicitation agent. The company has also extended the early tender premium until the expiration date and amended the terms of the tender offer to extend the total consideration, which includes the early tender premium, to all notes validly tendered after the early tender date.
These results indicate the company's efforts to manage its debt and optimize its capital structure, as well as the response from note holders to the tender offer. The market has reacted to these announcements by moving the company's shares -0.71% to a price of $18.21. For the full picture, make sure to review SM Energy Co's 8-K report.
