Each one in plain English, with the numbers worked through for a shareholder.
17 Nov 2015debt financing● NeutralMajor
On November 17, 2015 Southwestern took out a $750 million unsecured three-year term loan from Bank of America and other lenders, borrowed in full that day. The press release says the money was used to pay down its existing credit facility and commercial paper, moving existing debt rather than adding new debt. The same filing notes a new automatic shelf registration replacing the one that expired November 13, 2015; the company says it was not filed for any specific offering.
On April 15, 2015 Southwestern repaid the full $500 million two-year term loan from December 2014, using proceeds from selling its northeastern Pennsylvania gathering assets and revolver borrowings. That sale closed April 10, 2015 with net proceeds of about $488.3 million (subject to post-closing adjustments), which continues the plan to pay down the Chesapeake acquisition financing.
Southwestern sold $2.2 billion of senior notes (3.300% due 2018, 4.050% due 2020, 4.950% due 2025), closing January 23, 2015 with net proceeds of about $2,179 million. The money repaid all of the $4.5 billion bridge loan from the Chesapeake deal and will repay part of the revolving credit facility, replacing short-term borrowing with longer-term debt.
23 Dec 2014asset acquisition disposition● NeutralMajor
The Chesapeake acquisition closed December 22, 2014 after a settlement cut the price by about $400 million to roughly $4.975 billion, funded by a $4.5 billion 364-day bridge loan and a $500 million two-year term loan, both fully drawn. Southwestern also agreed to buy about 30,000 acres from Statoil for about $365 million (after adjustment), closing expected in Q1 2015 and funded from the revolving credit facility, and plans to repay the bridge and term loans from asset sales and future debt and equity issuance; shareholders should note possible equity issuance is flagged only as a plan.
On October 14, 2014 Southwestern agreed to buy about 413,000 net acres in West Virginia and southwest Pennsylvania from Chesapeake for about $5.375 billion, expected to close by year-end, with a 5% deposit already paid. It has a $5.0 billion bridge loan commitment from Bank of America and plans to raise permanent debt and equity financing, far larger than its earlier 2013-14 acreage purchases.
The Colorado Niobrara purchase closed on May 1, 2014: about 312,000 net acres for $180 million before adjustments, from Quicksilver Resources and a Shell subsidiary. The filing also notes an investor presentation posted May 5, 2014, with no details given in the text.
On March 4, 2014 Southwestern agreed to buy about 312,000 net acres of Niobrara oil and gas properties in northwest Colorado for $180 million from Quicksilver Resources and a Royal Dutch Shell subsidiary (SWEPI LP), expected to close in the second quarter of 2014. This is a further acreage purchase following the 2013 Pennsylvania Marcellus deal.
On December 16, 2013 Southwestern signed a new unsecured $2.0 billion credit facility maturing December 14, 2018 (two one-year extensions possible, expandable by up to $500 million), led by JPMorgan Chase. It replaces the $1.5 billion facility that was due to expire in February 2016, with no prepayment penalties on the old one.
The Pennsylvania Marcellus purchase from Chesapeake and its partner closed on May 15, 2013 as planned: about 162,000 net acres for roughly $93 million before adjustments, paid for using the revolving credit facility.
Southwestern agreed on April 25, 2013 to buy about 162,000 net acres of Pennsylvania Marcellus Shale gas properties from Chesapeake Energy and one of its partners for about $93 million, with closing expected around May 15, 2013. The properties currently produce about 2 MMcf per day from 17 gross wells (1.2 net).
