Swift Energy has increased the size of its public offering of Senior Notes due 2020 from $200 million to $225 million, and is calling for redemption for all of its outstanding $150 million 7 5/8% Senior Notes due 2011 in accordance with the terms of those notes.
The new Senior Notes, which carry a coupon rate of 8 7/8%, are being sold at 98.389% of par, which equates to an effective yield to maturity of 9 1/8%. Interest on the Senior Notes will be payable on January 15 and July 15 of each year, commencing January 15, 2010, which first interest payment will consist only of interest from the closing date. The offering is expected to close November 25, 2009, subject to normal closing conditions. The new Senior Notes received ratings of BB- from Standard & Poor’s and B3 from Moody's.
The largest portion of the net proceeds of approximately $216.4 million of the new Senior Notes offering will be used by the Company to redeem all of its outstanding 7 5/8% Senior Notes due 2011 (CUSIP #870738AE1) at a redemption price of 101.906% of their principal amount, plus accrued and unpaid interest from July 15, 2009 to the redemption date. The Senior Notes due 2011 will be automatically redeemed on December 10, 2009 and no further interest will accrue on these notes after that date. A Notice of Redemption is being mailed to all registered holders of the Senior Notes due 2011.
The remainder of the net proceeds of the new Senior Notes offering will be used to repay the total amount outstanding on the Company's bank credit agreement.
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