OKLAHOMA CITY, Sept. 10, 2019 /PRNewswire/ -- On
September 9, 2019, Chesapeake Energy
Corporation (NYSE: CHK) entered into a privately negotiated
securities exchange agreement under which it has agreed to issue an
aggregate of 250,721,554 shares of the company's common stock, par
value $0.01 per share, in exchange
for: (i) approximately $40.0 million
aggregate principal amount of its 5.75% Convertible Preferred
Stock; (ii) approximately $112.7
million aggregate principal amount of its 4.875% Senior
Notes due 2022; (iii) approximately $129.3
million aggregate principal amount of its 5.75% Senior Notes
due 2023; (iv) approximately $155.8
million aggregate principal amount of its 5.5% Convertible
Senior Notes due 2026; and (v) approximately $150.0 million aggregate principal amount of its
8.00% Senior Notes due 2027. The company may engage in similar
transactions in the future but is under no obligation to do so.
Doug Lawler, Chesapeake's
President and Chief Executive Officer, commented, "We had an
opportunity to partner with a
large, multi-asset investment
manager who believes in the long-term value of our common shares and, in
doing so, retired a portion of our debt and preferred stock at a
significant discount to its par value and reduced our annual
interest and preferred dividend payments by approximately
$35 million. We are pleased with the
results of this transaction and will continue to focus further
debt reduction through a variety of methods including selling
non-core assets, improving our capital efficiency and optimizing
our capital allocation."
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.
|
|
|
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
CHESAPEAKE ENERGY
CORPORATION
|
Brad Sylvester,
CFA
(405)
935-8870
ir@chk.com
|
Gordon
Pennoyer
(405)
935-8878
media@chk.com
|
6100 North Western
Avenue
P.O. Box
18496
Oklahoma City, OK
73154
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/chesapeake-energy-corporation-exchanges-approximately-588-million-of-senior-notes-and-preferred-shares-for-common-shares-300914788.html
SOURCE Chesapeake Energy Corp.