OKLAHOMA CITY, May 31 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced the pricing for its offer to
exchange shares of its common stock for each outstanding share of its 5.00%
Cumulative Convertible Preferred Stock (Series 2003) (NYSE: CHKPrB, the
"Preferred Stock") (CUSIP No. 165167800).
Chesapeake is offering to exchange 6.1847 shares of its common stock
for each share of the outstanding Preferred Stock tendered in the exchange
offer. The number of shares of common stock to be exchanged for each share
of Preferred Stock (the "Exchange Ratio") was fixed after 5:00 p.m. New
York City time on Tuesday, May 30, 2006 (the "Pricing Date"), on the basis
of the pricing formula set forth herein. The Exchange Ratio is equal to the
sum of (i) 6.0962 shares of common stock, the number of shares into which
the Preferred Stock is presently convertible, and (ii) a number of
additional shares of common stock equal to $2.64 divided by $29.84, which
is the arithmetic daily volume-weighted average price of our common stock
over the eleven-day trading period beginning on May 15, 2006, and ending on
the Pricing Date. The exchange offer is subject to the satisfaction of
certain conditions.
The exchange offer will expire at 5:00 p.m. New York City time on
Thursday, June 1, 2006, unless extended or earlier terminated by
Chesapeake. Holders may withdraw tendered shares of Preferred Stock at any
time before the exchange offer expires, or if not previously returned, a
holder may withdraw any tendered shares of Preferred Stock that are not
accepted by Chesapeake on or before June 29, 2006. The tender and
withdrawal of shares of Preferred Stock pursuant to the offer to exchange
held in "street" name are subject to compliance with the appropriate
procedures of the automated tender offer procedures, or ATOP, system of The
Depository Trust Company.
The exchange offer is being made pursuant to an offer to exchange and
related letter of transmittal, copies of which may be obtained without
charge from the information agent for the exchange offer, Global Bondholder
Services Corporation, who may be reached at 866-924-2200 (US toll-free) and
212-430- 3774 (collect). The offer to exchange and other related documents
filed with the Securities and Exchange Commission on Schedule TO may be
obtained for free at the Commission's web site, http://www.sec.gov .
Holders of Preferred Stock are urged to read the offer to exchange and
related letter of transmittal as they include important information.
The securities offered have not been and will not be registered under
the Securities Act and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws.
This press release is not an offer to purchase or an offer to exchange or a
solicitation of acceptance of the offers to purchase or offer to exchange,
which may be made only pursuant to the terms of the applicable offer to
purchase or offer to exchange and related letters of transmittal.
Chesapeake Energy Corporation is the second largest independent
producer of natural gas in the U.S. Headquartered in Oklahoma City, the
company's operations are focused on exploratory and developmental drilling
and corporate and property acquisitions in the Mid-Continent, Permian
Basin, South Texas, Texas Gulf Coast, Barnett Shale, Ark-La-Tex and
Appalachian Basin regions of the United States. The company's Internet
address is http://www.chkenergy.com .
SOURCE Chesapeake Energy Corporation
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Related links:
http://www.sec.gov
http://www.chkenergy.com
CONTACT:
Jeffrey L. Mobley, CFA, Senior Vice President
- Investor Relations and Research, +1-405-767-4763, or
Jmobley@chkenergy.com , or Marc Rowland, Executive Vice President
and Chief Financial Officer, +1-405-879-9232, or
mrowland@chkenergy.com , both of Chesapeake Energy Corporation
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