OKLAHOMA CITY, Nov. 2 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it has priced a private offering
of $500 million aggregate principal amount of senior notes due 2020, which
will carry an interest rate of 6.875%. The senior notes were priced at
98.847% of par to yield 7.0% to maturity.
The closing of the senior notes offering is expected to occur on
November 8, 2005 and is subject to the satisfaction of customary closing
conditions.
Chesapeake intends to use the net proceeds from the offering, together
with proceeds from concurrent private offerings of cumulative convertible
preferred stock and contingent convertible senior notes due 2035, to partially
fund its recently announced acquisition of Columbia Natural Resources, LLC for
$2.2 billion in cash.
The new notes have not been registered under the Securities Act of 1933,
as amended (the "Securities Act"), 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. The notes will be eligible for resale under Rule
144A. This announcement shall not constitute an offer to sell or a
solicitation of an offer to buy the 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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