Southwestern Energy Co. (NYSE: SWN) priced an offering of 26.1 million shares of common stock at $23 a share, and 30 million depositary shares at $50 each, Bloomberg reported Jan. 15.
Net proceeds from the offerings are expected to be about $2.04 billion and will be used to help pay off a $4.5 billion bridge loan, the company said in a statement Jan. 15. The common stock and depositary shares each represent a 1/20th interest in a share of Southwestern’s series B mandatory convertible preferred stock, with a liquidation preference of $1,000 per share.
Southwestern will seek to list the depositary shares on the New York Stock Exchange. If the application is approved, the company expects trading of the depositary shares to begin within 30 days of the initial delivery of the shares.
Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., Wells Fargo Securities LLC and BMO Capital Markets are joint book-running managers for the common stock offering.
Bank of America, Citigroup, J.P. Morgan Chase, Wells Fargo Securities and BNP Paribas SA are joint book-running managers for the offering of depositary shares.
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