OKLAHOMA CITY, Nov. 30 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it is commencing a cash tender
offer and consent solicitation (the "Offer") for any and all of its
$209,815,000 aggregate principal amount of 8.375% Senior Notes due 2008 (the
"Notes") (CUSIP No. 165167AV9).
Holders who validly tender their Notes by 5:00 p.m., New York City time,
on December 13, 2004 (the "Consent Date"), will receive the total
consideration of $1,084.33, consisting of (i) the purchase price of $1,074.33
and (ii) the consent payment of $10.00 per $1,000 principal amount of Notes
accepted for purchase. Holders who validly tender their Notes by the Consent
Date will receive payment on the initial payment date, which is expected to be
on or about December 14, 2004.
The Offer is scheduled to expire at 12:00 midnight, New York City time, on
December 28, 2004, unless extended (the "Expiration Date"). Holders who
validly tender their Notes after the Consent Date and prior to the Expiration
Date will receive the purchase price of $1,074.33 per $1,000 principal amount
of Notes accepted for purchase. Payment for Notes tendered after the Consent
Date will be made promptly after the Expiration Date.
All holders whose Notes are accepted for payment will also receive accrued
and unpaid interest up to, but not including, the applicable date of payment
for the Notes.
In connection with the Offer, the Company is soliciting consents to
certain proposed amendments to eliminate substantially all of the restrictive
covenants in the indenture governing the Notes. Holders may not tender their
Notes without delivering consents or deliver consents without tendering their
Notes.
The Offer is subject to the satisfaction of certain conditions, including
Chesapeake's receipt of tenders of Notes representing at least a majority in
principal amount of the outstanding Notes and completion of a recently
announced private offering of senior notes which will be used to finance the
Offer. The terms of the Offer will be described in the Company's Offer to
Purchase and Consent Solicitation Statement dated November 30, 2004, copies of
which may be obtained from MacKenzie Partners, Inc., the information agent for
the Offer, at (800) 322-2885 (US toll free) and (212) 929-5500 (collect).
The Company has engaged Deutsche Bank Securities Inc. to act as dealer
manager and solicitation agent in connection with the Offer. Questions
regarding the Offer may be directed to Deutsche Bank Securities Inc., High
Yield Capital Markets, at (800) 553-2826 (US toll-free) and (212) 250-7466
(collect).
This announcement is not an offer to purchase, a solicitation of an offer
to purchase or a solicitation of consent with respect to any securities. The
Offer will be made solely by the Offer to Purchase and Consent Solicitation
Statement to be dated November 30, 2004.
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 sixth 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 producing
property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas
Gulf Coast and Ark-La-Tex regions of the United States.
SOURCE Chesapeake Energy Corporation
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Related links:
http://www.chkenergy.com
CONTACT:
Marc Rowland, Executive Vice President and
Chief Financial Officer, +1-405-879-9232, or Tom Price, Jr.,
Senior Vice President-Investor Relations, +1-405-879-9257, both
of Chesapeake Energy Corporation
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