Swift Energy Closes $150 Million Senior Notes Offering
Swift Energy Company
|Wednesday, June 23, 2004
Swift Energy Company (NYSE:SFY) has closed its public offering of $150 million of 7 5/8% Senior Notes due 2011 ("Senior Notes"). The new Senior Notes received ratings of BB- from Standard & Poor's and B1 from Moody's.
Swift Energy also announced that $32.1 million of its $125 million 10 1/4% senior subordinated notes due 2009 have been tendered for early repurchase under the Company's outstanding tender offer. The Company has waived the minimum tender and supplemental indenture conditions to the tender offer and consent solicitation and has accepted such tenders for purchase and payment. The Company will use approximately $35.1 million of the net proceeds from sale of the Senior Notes to repurchase the tendered 10 1/4% notes at a repurchase price of $1,055 per $1,000 principal amount, which includes a consent payment of $20, plus accrued and unpaid interest to the repurchase date. The consent period for the tender offer closed at 5:00 p.m. New York City time yesterday, June 22, 2004. Swift Energy will record a charge of approximately $2.7 million in the second quarter 2004 for early extinguishment of debt as a result of the early tender of the 10 1/4% notes.
The tender offer remains open until midnight, New York City time, July 12, 2004. Holders of the 10 1/4% notes tendering after the consent period will only receive the tender offer consideration of $1,035 per $1,000 principal amount and will not receive the consent payment. Any 10 1/4% notes not tendered by such date are expected to be called by the Company for redemption on or about August 1, 2004 at a redemption price of $1,051.25 per $1,000 principal amount, the redemption price provided in the indenture governing the 10 1/4% notes, plus accrued interest to the redemption date. Swift Energy intends to use the remainder of the net proceeds of its Senior Notes offering to repay indebtedness on the Company's bank credit facility and for other general corporate purposes.
The Senior Notes offering was made under the Company's May 11, 2004 effective registration statement filed with the SEC covering the issuance from time to time of up to $350 million of various securities of the Company. The offering was led by Credit Suisse First Boston, with Goldman, Sachs & Co., Jefferies & Company, Inc., Banc One Capital Markets, Inc., Deutsche Bank Securities, CIBC World Markets and BNP PARIBAS serving as co-managers of the underwriting syndicate, which offered the Senior Notes to the public. This news release does not constitute an offer to sell or a solicitation of an offer to buy the Senior Notes.