SM Energy Prices $1 Billion 6.625% Notes Due 2034 to Fund $750M Tender
SM Energy priced an upsized $1.0 billion 6.625% senior note offering due 2034, issuing the debt at par. It plans to use proceeds to tender for up to $750 million of its 8.375% senior notes due 2028 and for general corporate purposes including additional 2028 note repayments.
1. Offering Terms
SM Energy has upsized its private placement to $1.0 billion of 6.625% senior notes due 2034, priced at par. The notes will be issued under Rule 144A and Regulation S and are expected to close on March 9, 2026, subject to customary conditions. They are available exclusively to qualified institutional buyers and non-U.S. persons.
2. Use of Proceeds
Net proceeds will fund a previously announced tender offer to repurchase up to $750 million of its 8.375% senior notes due 2028, and any remaining proceeds will support additional debt repayments and corporate activities.
3. Strategic Impact
By replacing 8.375% debt with 6.625% notes, annual interest expense will decrease and the debt maturity profile extends to 2034. The refinancing enhances liquidity flexibility and may improve credit metrics by lowering leverage and fixed charges. Management anticipates the move will strengthen the balance sheet and support long-term financial objectives.