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 $400 million of a new issue of
senior notes due 2020. The notes are expected to be eligible for resale under
Rule 144A. The private offering, which is subject to market and other
conditions, will be made within the United States only to qualified
institutional buyers, and outside the United States only to non-U.S. investors
under Regulation S of the Securities Act of 1933.
Chesapeake intends to use the net proceeds from the offering, together
with proceeds from concurrent private offerings of cumulative convertible
preferred stock and senior contingent convertible notes, to partially fund its
recently announced acquisition of Columbia Natural Resources, LLC for
$2.2 billion in cash.
The 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.
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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