OKLAHOMA CITY, Dec. 6, 2016 /PRNewswire/ -- Chesapeake
Energy Corporation (NYSE:CHK) today announced that it has priced
its private placement to eligible purchasers of $1.0 billion aggregate principal amount of 8.00%
senior notes due 2025. The private placement was upsized from a
previously announced amount of $750
million.
The notes will bear interest at a rate of 8.00% per annum,
payable semi-annually on January 15
and July 15 of each year, beginning
on July 15, 2017. The notes will
mature on January 15, 2025.
Chesapeake may redeem some or all of the notes at any time prior to
January 15, 2020 at a price equal to
100% of the principal amount of the notes to be redeemed plus a
"make-whole" premium. In addition, Chesapeake may redeem some or
all of the notes at any time on or after January 15, 2020 at the applicable redemption
price in accordance with the terms of the notes and the indenture
and supplemental indenture governing the notes. In addition,
subject to certain conditions, Chesapeake may redeem up to 35% of
the aggregate principal amount of the notes at any time prior to
January 15, 2020 at a price equal to
108% of the principal amount of the notes to be redeemed using the
net proceeds of certain equity offerings by Chesapeake.
The closing of the private placement is expected to occur on
December 20, 2016 and is subject to
the satisfaction of customary closing conditions.
Chesapeake intends to use the net proceeds from the offering,
together with cash on hand and borrowings under its revolving
credit facility, to finance tender offers for certain of its senior
notes announced today. If the tender offers are not consummated or
the net proceeds from the offering exceed the total consideration
payable from the offering in the tender offers, Chesapeake intends
to use the remaining net proceeds from the offering for general
corporate purposes, which may include debt repurchases and the
repayment of its senior notes with near-term maturities as they
become due.
The notes are being offered and sold to persons reasonably
believed to be qualified institutional buyers pursuant to Rule 144A
under the Securities Act of 1933, as amended (the "Securities
Act"), and outside the United
States to non-U.S. persons pursuant to Regulation S under
the Securities Act. The offer and sale of the notes and the related
subsidiary guarantees have not been registered under the Securities
Act or any state securities laws and may not be offered or sold in
the United States absent
registration or an applicable exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act
and applicable state laws.
This press release does not constitute an offer to sell, or a
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale is unlawful. Any offers of the securities will
be made in the United States only
by means of a private offering circular pursuant to Rule 144A under
the Securities Act, and outside the
United States to non-U.S. persons pursuant to Regulation S
under the Securities Act. This press release does not constitute an
offer to purchase or a solicitation of an offer to sell
Chesapeake's outstanding senior notes subject to the concurrent
tender offers. The concurrent tender offers are being made only by
and pursuant to, and on the terms and conditions set forth in, the
applicable Offer to Purchase dated December
6, 2016 and the related letter of transmittal.
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.
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
Brad Sylvester,
CFA
|
Gordon
Pennoyer
|
(405)
935-8870
|
(405)
935-8878
|
ir@chk.com
|
media@chk.com
|
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SOURCE Chesapeake Energy Corporation