OKLAHOMA CITY, JUNE 26 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it intends to commence a
public offering of $500 million of a new issue of mandatory convertible
preferred stock with a liquidation preference of $250 per share. Chesapeake
intends to use the net proceeds from the offering, together with proceeds
from concurrent public offerings of senior notes and common stock, to fund
its recently announced Barnett Shale acquisitions for $932 million, to
repay outstanding indebtedness under its revolving credit facility and for
general corporate purposes.
The offering will be made under a shelf registration statement that
became effective on December 8, 2005. The company intends to grant
underwriters a 30-day option to purchase a maximum of $75 million in
additional shares of mandatory convertible preferred stock.
Goldman, Sachs & Co., Banc of America Securities LLC, Credit Suisse,
Lehman Brothers Inc. and UBS Securities LLC will act as joint book-running
managers for the Offering. The Offering is being made only by means of a
prospectus and related prospectus supplement, copies of which may be
obtained from Goldman, Sachs & Co., Attn: Prospectus Dept., 85 Broad
Street, New York, NY 10004, Fax: 212 902 9316 or email at
prospectus-ny@ny.email.gs.com; Banc of America Securities LLC, Attn:
Prospectus Department, 100 West 33rd Street, New York, NY 10001,
646-733-4166; Credit Suisse, One Madison Avenue, Level 1B, New York, NY
10010, 212-325-2580; Lehman Brothers Inc., c/o ADP Financial Services,
Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY
11717; UBS Securities LLC, Prospectus Department, 299 Park Avenue, 29th
Floor, New York, NY 10171, 212-821-3000. An electronic copy of the
prospectus and prospectus supplement is available from the Securities and
Exchange Commission's website at http://www.sec.gov .
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws
of any state.
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 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.chkenergy.com
CONTACT:
Jeffrey L. Mobley, CFA and Senior Vice
President of Investor Relations And Research, +1-405-767-4763,
jmobley@chkenergy.com, or Marc Rowland, Executive Vice President
And Chief Financial Officer, +1-405-879-9232,
mrowland@chkenergy.com, both of Chesapeake Energy Corporation
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