SM Energy Company has announced a significant financial maneuver, intending to offer $750 million in senior notes due 2034. This offering is designed to fund a tender offer for up to $750 million of its outstanding 8.375% Senior Notes due 2028, signaling a strategic move to optimize its capital structure and manage its debt profile.
SM Energy announced its intention to offer $750 million aggregate principal amount of senior notes due 2034. This offering is contingent on market conditions. The company plans to utilize the net proceeds from this new note issuance, combined with existing cash reserves and potential borrowings under its revolving credit facility, to finance a cash tender offer. This tender offer aims to purchase up to $750 million of its outstanding $1.350 billion principal amount of 8.375% Senior Notes due 2028.
The company has formally launched the cash tender offer for its 2028 notes, with specific terms and conditions detailed in its Offer to Purchase dated March 4, 2026. This move is part of SM Energy’s broader strategy to manage its debt maturity profile and potentially reduce its overall interest expense.
In conjunction with these financial transactions, SM Energy has also made available audited financial statements for Civitas Resources for the years 2024 and 2025. Additionally, unaudited pro forma combined financial data for SM Energy and Civitas, along with a year-end 2025 reserve report for Civitas, have been disclosed. These disclosures aim to provide investors with a clearer picture of the enlarged company’s financial standing and asset base following recent integrations.
The senior notes to be offered will not be registered under the Securities Act of 1933. They will be issued under exemptions from registration requirements and are intended for qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States in accordance with Regulation S. This structure allows for a more efficient offering process.
SM Energy Company is an independent energy firm engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs. The company operates in key U.S. basins, including Colorado, New Mexico, Texas, and Utah.