SM Energy Prices $350 Million Private Offering of Senior Unsecured Notes Due 2021 at 6.50%
SM Energy Company (NYSE: SM) today announces that it has priced a private offering of $350 million of 6.50% senior unsecured notes due 2021. The Company increased the size of the offering from the previously announced $300 million to $350 million. These senior notes will be issued at par. The offering is expected to close on November 8, 2011, subject to customary closing conditions.
SM Energy intends to use the net proceeds from the offering to repay outstanding borrowings under its credit facility and for general corporate purposes. General corporate purposes may in the future include funding the redemption of SM Energy's 3.50% Senior Convertible Notes, which are able to be redeemed on or after April 6, 2012. However, SM Energy may choose to use the proceeds for other corporate purposes depending on market conditions and other factors.
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