Southwestern Energy Floats $1.2B in New IOUs

It's been our observation since beginning to write about the shale energy space in 2009 that every year or two most drillers, at least the publicly traded drillers, issue new notes (what we call IOUs) to pay off already-issued notes coming due within a few years. And if there's any money left over from the new tranch of notes issued, they use it to pay down other debts or "for other corporate purposes." The latest swap-new-notes-for-old-notes comes from a major Marcellus/Utica driller, Southwestern Energy, which last week floated $1.2 billion of new notes to help pay off what amounts to $1.4 billion of older notes coming due in the next few years.

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