Southwestern Energy Co. (SWN) Thursday announced the execution of a definitive purchase and sale agreement with Howard Midstream Energy Partners, LLC to sell Southwestern Energy's gathering assets located in Bradford and Lycoming counties in northeastern Pennsylvania for $500 million.
The company said the assets include about 100 miles of natural gas gathering pipeline, with nearly 600 million cubic feet per day of capacity. The proceeds from the transaction will be used to substantially repay borrowings under Southwestern Energy's $500 million term loan facility that matures in December 2016. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2015.
"We are excited to have this deal in place as it represents a major step toward completing our acquisition financing plan that we previously announced," remarked Steve Mueller, Chairman and Chief Executive Officer of Southwestern Energy. "With this deal, we are well on our way to achieving the $500 million to $800 million in divestiture proceeds announced as part of that plan."
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