DivestmentApr 30, 2026, 04:30 PM
SM Closes $900M South Texas Divestment; Redeems $819M 2026 Senior Notes
AI Summary
SM Energy completed its South Texas Divestiture, selling approximately 61,000 net acres for $900 million in net cash proceeds. The company plans to use these proceeds to fully redeem $819 million aggregate principal amount of its 6.75% Senior Notes due September 2026 and 5.0% Senior Notes due October 2026. Additionally, SM Energy's semi-annual borrowing base redetermination reaffirmed its borrowing base at $5.0 billion and aggregate lender commitments at $2.5 billion, demonstrating progress towards its divestiture target and balance sheet strengthening.
Key Highlights
- Completed South Texas Divestiture for approximately $900 million net cash proceeds.
- Divestiture involved approximately 61,000 net acres in the southern Maverick Basin.
- Intends to redeem $819 million aggregate principal of 2026 Senior Notes at par.
- Redemption includes $419 million of 6.75% Senior Notes due Sep 2026 by June 1, 2026.
- Redemption includes $400 million of 5.0% Senior Notes due Oct 2026 by May 11, 2026.
- Borrowing base reaffirmed at $5.0 billion after divestiture.
- Aggregate lender commitments reaffirmed at $2.5 billion.