SM Energy Company (NYSE: SM) today announces that it has priced a
private offering of $500 million of 5% senior unsecured notes due 2024.
The company increased the size of the offering from the previously
announced $400 million to $500 million. These senior notes will be
issued at par. The offering is expected to close on May 20, 2013,
subject to customary closing conditions. The company intends to use the
net proceeds from the offering to repay outstanding borrowings under its
credit facility and for general corporate purposes.
The notes have not been registered under the Securities Act of 1933 (the
“Securities Act”) or applicable state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws. The notes may be
resold by the initial purchasers pursuant to Rule 144A and Regulation S
under the Securities Act.
This press release is being issued pursuant to Rule 135c under the
Securities Act, and is neither an offer to sell any of these securities,
nor a solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
ABOUT THE COMPANY
SM Energy Company is an independent energy company engaged in the
acquisition, exploration, development, and production of crude oil,
natural gas, and natural gas liquids in onshore North America. SM Energy
routinely posts important information about the company on its website.
For more information about SM Energy, please visit its website at www.sm-energy.com.
INFORMATION ON FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of
securities laws, including forecasts and projections. The words
“anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,”
“forecast,” “intend,” “plan,” “project,” “will” and similar expressions
are intended to identify forward-looking statements. These statements
involve known and unknown risks, which may cause SM Energy's actual
results to differ materially from results expressed or implied by the
forward-looking statements. These risks include factors such as the
availability, proximity and capacity of gathering, processing and
transportation facilities; the uncertainty of negotiations to result in
an agreement or a completed transaction; the uncertain nature of
announced acquisition, divestiture, joint venture, farm down or similar
efforts and the ability to complete any such transactions; the uncertain
nature of expected benefits from the actual or expected acquisition,
divestiture, joint venture, farm down or similar efforts; the volatility
and level of oil, natural gas, and natural gas liquids prices;
uncertainties inherent in projecting future rates of production from
drilling activities and acquisitions; the imprecise nature of estimating
oil and gas reserves; the availability of additional economically
attractive exploration, development, and acquisition opportunities for
future growth and any necessary financings; unexpected drilling
conditions and results; unsuccessful exploration and development
drilling results; the availability of drilling, completion, and
operating equipment and services; the risks associated with the
Company's commodity price risk management strategy; uncertainty
regarding the ultimate impact of potentially dilutive securities; and
other such matters discussed in the “Risk Factors” section of SM
Energy's 2012 Annual Report on Form 10-K. The forward-looking statements
contained herein speak as of the date of this announcement. Although SM
Energy may from time to time voluntarily update its prior
forward-looking statements, it disclaims any commitment to do so except
as required by securities laws.
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