OKLAHOMA CITY, June 7 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) announced today that it has priced a private placement
offering to eligible purchasers of $600 million of senior notes due
January 15, 2018, which will carry an interest rate of 6.25%. The senior
notes were priced at 98.923% of par to yield 6.375% to maturity. The notes
are expected to be eligible for resale under Rule 144A.
Chesapeake intends to use the net proceeds to fund tender offers for all
of its approximately $245.4 million principal amount outstanding 8.125% Senior
Notes due 2011 and $300 million principal amount outstanding 9.00% Senior
Notes due 2012. The tender offers are expected to be launched this week.
Remaining net proceeds from the offering, if any, will be used for general
corporate purposes, including repayment of debt under its revolving bank
credit facility.
The new notes have not been registered under the Securities Act of 1933 or
applicable state securities laws, 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 laws. This
announcement shall not constitute an offer to sell or a solicitation of an
offer to buy the new notes.
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements include estimates and give
our current expectations or forecasts of future events. Although we believe
our forward-looking statements are reasonable, they can be affected by
inaccurate assumptions or by known or unknown risks and uncertainties.
Chesapeake Energy Corporation is the third 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 producing
property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas
Gulf Coast and Ark-La-Tex (including the Barnett Shale) regions of the United
States.
SOURCE Chesapeake Energy Corporation
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Related links:
http://www.chkenergy.com
CONTACT:
Marc Rowland, Executive Vice President and
Chief Financial Officer, +1-405-879-9232, or Jeffrey L. Mobley,
Vice President, Investor Relations and Research, +1-405-767-4763,
both of Chesapeake Energy Corporation
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