OKLAHOMA CITY, Dec. 1 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it has priced a private offering
of $600 million of senior notes due June 15, 2015, which will carry an
interest rate of 6.375%. The senior notes were priced at 99.056% of par to
yield 6.50% to maturity. The senior notes being sold by Chesapeake have not
been registered under the Securities Act of 1933 and may not be offered or
sold in the United States absent registration or an applicable exemption from
registration requirements. The senior notes will be eligible for trading
under Rule 144A.
Chesapeake intends to use the net proceeds to fund its recently announced
tender offer for all of its approximately $210 million outstanding 8.375%
Senior Notes due 2008, to fund the recently announced acquisition of certain
natural gas properties from Hallwood Energy Corporation, and to repay debt
under its revolving bank credit facility.
This announcement shall not constitute an offer to sell or a solicitation
of an offer to buy. 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. 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:
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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