OKLAHOMA CITY, Nov. 1 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it is commencing a private
placement offering to eligible purchasers of $500 million of a new series of
its cumulative convertible preferred stock with a liquidation preference of
$100 per share. The offering is expected to be eligible for resale under Rule
144A. The private offering, which is subject to market and other conditions,
will be made only to qualified institutional buyers.
Chesapeake intends to use the net proceeds of the offering, together with
proceeds from concurrent private offerings of senior notes and senior
contingent convertible notes, to partially fund its recently announced
acquisition of Columbia Natural Resources, LLC for $2.2 billion in cash.
The company also intends to grant a 30-day option to the initial
purchasers to purchase a maximum of $75 million in additional shares of
convertible preferred stock.
The preferred stock has 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 preferred stock.
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.
Pro forma for its acquisition of Columbia Natural Resources, LLC and its
affiliates, 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
property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas
Gulf Coast, Barnett Shale, Ark-La-Tex and, most recently, the Appalachian
Basin regions of the United States.
SOURCE Chesapeake Energy Corporation
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Related links:
http://www.chkenergy.com
CONTACT:
Jeffrey L. Mobley, CFA, 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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