DISTRESSED DAILY: SM Energy to Pay Off Debt as Recovery Unfolds

SM Energy is looking to move beyond distress about a year after the pandemic-driven rout in energy markets forced the company to restructure debt -- and dismay some bondholders in the process.

The company sold $400 million in debt Wednesday, and proceeds will be used to pay down debt, SM said. SM’s debt rallied this year to trade at or above par, helped by a post-pandemic economic recovery that’s lifted demand for oil and gas.

SM’s “substantially improved” debt maturity profile and its ability to generate positive cash flow for debt reduction led Moody’s to increase the company’s rating ...