OKLAHOMA CITY, Aug. 17, 2016 /PRNewswire/ -- Chesapeake Energy
Corporation (NYSE:CHK) announced today that it successfully priced
its proposed term loan and, as a result of strong demand, has
upsized the term loan to $1.5 billion
from a previously announced size of $1.0
billion. The term loan is being arranged by Goldman Sachs
Bank USA, Citigroup Global Markets
Inc. and MUFG as joint lead arrangers. Chesapeake intends to use
the net proceeds of the loan to finance tender offers for its
unsecured notes, with any remaining proceeds used for further debt
repayments and other general corporate purposes. Chesapeake expects
this financing and the tender offers to improve its financial
flexibility by reducing its near-term maturing debt.
The loan will have a five-year term and bear interest at a rate
of LIBOR plus 7.50% per annum, subject to a 1.00% LIBOR floor. The
loan will be made at par without original issue discount. The loan
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).
The new term loan 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.
The loan is expected to close on or before August 23, 2016, subject to customary closing
conditions and final documentation.
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 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)
935-8870
|
(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