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 senior notes due 2013.
Chesapeake intends to use the net proceeds from the offering, together with
proceeds from concurrent public offerings of mandatory convertible
preferred stock 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 when filed by the company today.
Banc of America Securities LLC, Deutsche Bank Securities, Goldman,
Sachs & Co., Lehman Brothers Inc. and Wachovia Securities acted as joint
book-running managers for the Senior Notes offering. Copies of the
preliminary prospectus and records relating to the offering may be obtained
from the offices of Banc of America Securities LLC, Attn: Prospectus
Department, 100 West 33rd Street, New York, NY 10001, 646-733-4166;
Deutsche Bank Securities, Attn: Prospectus Department, 1290 Avenue of
Americas, New York, NY 10019, Fax: 212-468-5333; 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; Lehman Brothers
Inc., c/o ADP Financial Services, Integrated Distribution Services, 1155
Long Island Avenue, Edgewood, NY 11717; and Wachovia Securities, One
Wachovia Center, 301 South College Street, Charlotte, NC 28288-0604. An
electronic copy of the prospectus will be available on the website of the
Securities and Exchange Commission 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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