OKLAHOMA CITY, Aug. 15, 2016 /PRNewswire/ -- Chesapeake
Energy Corporation (NYSE:CHK) announced today that it has engaged
Goldman Sachs Bank USA, Citigroup
Global Markets Inc. and MUFG to assist with the arrangement of a
secured five-year term loan in an aggregate principal amount of
$1.0 billion. Chesapeake intends to
use the net proceeds of the loan to finance tender offers for
certain of its unsecured notes announced today. Chesapeake expects
this financing and the tender offers to improve its financial
flexibility as it will allow for the retirement of existing debt
with upcoming maturities.
The loan will be from one or more commercial banks, and will be
secured by the same collateral securing the company's revolving
credit facility (with a position in the collateral proceeds
waterfall junior to the credit facility).
Amounts borrowed under the new term loan facility will be
unconditionally guaranteed on a joint and several basis by
Chesapeake's direct and indirect wholly owned domestic subsidiaries
that are guarantors under the company's revolving credit
facility.
Chesapeake's ability to establish the new facility and borrow
thereunder will be subject to the receipt of commitments from
lenders to provide the facility, the negotiation and execution of
definitive loan documents and other customary conditions.
Headquartered in Oklahoma
City, Chesapeake Energy Corporation's (NYSE: CHK) operations
are focused on discovering and developing its large and
geographically diverse resource base of unconventional oil and
natural gas assets onshore in the United States. The company
also owns oil and natural gas marketing and natural gas gathering
and compression businesses.
This news release includes "forward-looking statements" that
give the company's current expectations or forecasts of future
events, including the amount and terms of the term loan and the use
of proceeds thereof. 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 the
funding of the term loan, and those stated in the company's Annual
Report on Form 10-K for the year ended December 31, 2015 and its other filings with the
SEC), 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.
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
CHESAPEAKE ENERGY
CORPORATION
|
Brad Sylvester,
CFA
|
Gordon
Pennoyer
|
6100 North Western
Avenue
|
(405)
935-8859
|
(405)
935-8878
|
P.O. Box
18496
|
ir@chk.com
|
media@chk.com
|
Oklahoma City, OK
73154
|
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SOURCE Chesapeake Energy Corporation