OKLAHOMA CITY, Dec. 13 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced, pursuant to its previously announced
cash tender offer and consent solicitation (the "Offer") for any and all of
its $209,815,000 aggregate principal amount outstanding of 8.375% Senior Notes
due 2008 (the "Notes") (CUSIP #165167AV9), it has received the consents
necessary to adopt certain proposed amendments to the indenture governing the
Notes. The proposed amendments will eliminate substantially all of the
restrictive covenants of the indenture. Adoption of the proposed amendments
requires the consent of holders of at least a majority of the aggregate
principal amount of the outstanding Notes.
Holders who validly tendered their Notes by 5:00 p.m., Eastern Standard
Time, on December 13, 2004 (the "Consent Date"), and consented to the proposed
amendments will receive the total consideration of $1,084.33 per $1,000.00
principal amount of Notes accepted for purchase, consisting of (i) the
purchase price of $1,074.33 and (ii) the consent payment of $10.00, plus
accrued interest up to, but not including, the date of acceptance. As of the
Consent Date, $190,825,000 in aggregate principal amount of the Notes had been
tendered in the Offer. Acceptance of and payment for such Notes is expected
to occur on December 14, 2004, subject to satisfaction or waiver of certain
conditions. Upon payment for such Notes, the amendments will become
effective.
Notes in the aggregate principal amount of $18,990,000 remain outstanding
and subject to the Offer which is scheduled to expire at 12:00 midnight,
Eastern Standard 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
$1,000.00 principal amount of Notes accepted for purchase. Payment for Notes
tendered after the Consent Date is expected to be on or about
December 29, 2004. 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.
The terms of the Offer are 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 was made solely by the Offer to Purchase and Consent Solicitation
Statement 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. 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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