Company Website:
http://www.chk.com
OKLAHOMA CITY -- (Business Wire)
Chesapeake Energy Corporation (NYSE:CHK) today announced that it has
priced its previously announced public offering of $3.0 billion in
aggregate principal amount of its senior notes at par. The notes will be
issued in two separate series of notes: $1,500,000,000 in Floating Rate
Senior Notes due 2019 that will bear interest at LIBOR plus 3.25%, reset
quarterly, and $1,500,000,000 in 4.875% Senior Notes due 2022.
Chesapeake expects the issuance and delivery of the two series of senior
notes to occur on April 24, 2014, subject to customary closing
conditions.
Chesapeake intends to use the net proceeds from the offering to repay
its existing unsecured term loan, redeem its 6.875% Senior Notes due
2018 and purchase the portion of its 9.50% Senior Notes due 2015 that
are tendered in its concurrent tender offer for such notes. To the
extent that any portion of the net proceeds of the offering is not used
as described above, Chesapeake plans to use such net proceeds for
general corporate purposes, which may include the purchase, repayment
and/or redemption of outstanding indebtedness.
The senior notes are being offered pursuant to an effective shelf
registration statement filed August 7, 2013 with the U.S. Securities and
Exchange Commission. Chesapeake intends to list the notes on the New
York Stock Exchange after issuance. Morgan Stanley & Co. LLC and
Citigroup Global Markets Inc. are acting as joint book-running managers
for the offering of the notes due 2019. Citigroup Global Markets Inc.,
Morgan Stanley & Co. LLC, Credit Agricole Securities (USA) Inc.,
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Mitsubishi
UFJ Securities, (USA) Inc. are acting as joint book-running managers for
the offering of the notes due 2022. Copies of the prospectus relating to
the offering may be obtained from Morgan Stanley & Co. LLC, Attn:
Prospectus Department, 180 Varick Street, 2nd floor New York, NY 10014,
by telephone at (866) 718-1649 or by email at prospectus@morganstanley.com
or Citigroup Global Markets Inc. c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood, New Jersey, 11717, by telephone at
(800) 831-9146 or by email at prospectus@citi.com.
An electronic copy of the preliminary prospectus supplement is available
on the website of the Securities and Exchange Commission at www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction. This press release shall not
constitute an offer to purchase or a solicitation of an offer to sell
Chesapeake’s 9.50% Senior Notes due 2015 in the concurrent tender offer.
The concurrent tender offer is being made only by and pursuant to, and
on the terms and subject to the conditions set forth in, the Offer to
Purchase dated April 10, 2014 and the related Letter of Transmittal.
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas and the 10th largest producer of oil and natural
gas liquids in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on discovering and developing its large and
geographically diverse resource base of unconventional natural gas and
oil assets onshore in the U.S. The company also owns substantial
marketing, compression and oilfield services businesses. Further
information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
This news release includes "forward-looking statements" that give
Chesapeake's current expectations or forecasts of future events,
including the expected consummation of the offering described and the
use of proceeds therefrom.Although we believe the
expectations and forecasts reflected in our forward-looking statements
are reasonable, we can give no assurance they will prove to have been
correct.They can be affected by inaccurate or changed
assumptions or by known or unknown risks and uncertainties (including
those stated in Chesapeake’s Annual Report on Form 10-K for the year
ended December 31, 2013), and actual results may differ from the
expectation expressed.We caution you not to place undue
reliance on our forward-looking statements, which speak only as of the
date of this news release, and we undertake no obligation to update this
information, except as required by applicable law.
Contacts:
Chesapeake Energy Corporation
Gary T. Clark, CFA, 405-935-8870
ir@chk.com
or
Media
Contact:
Gordon Pennoyer, 405-935-8878
media@chk.com
Source: Chesapeake Energy Corporation
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