OKLAHOMA CITY, Dec. 10, 2019 /PRNewswire/ -- Chesapeake
Energy Corporation (NYSE:CHK) announced today that it has
successfully priced its proposed term loan. The term loan is being
arranged by JPMorgan Chase Bank, N.A., Morgan Stanley Senior
Funding, Inc., BofA Securities, Inc. and MUFG Union Bank, N.A.
Chesapeake intends to use the net proceeds of the term loan, in
part, to finance a previously announced tender offer and consent
solicitation for unsecured notes issued by Brazos Valley Longhorn,
L.L.C. ("Brazos Valley") and Brazos Valley Longhorn Finance Corp.,
each a wholly owned subsidiary of Chesapeake, and to fund the
retirement of Brazos Valley's existing secured revolving credit
facility. Chesapeake expects these transactions to improve its
financial flexibility, as they will allow Brazos Valley and its
subsidiaries to support Chesapeake's current and future debt.
Doug Lawler, President and Chief
Executive Officer of Chesapeake Energy, stated, "We are very
pleased to have the financing in place to eliminate Brazos Valley's
separate capital structure. Combining into a single financing
structure increases our flexibility, enhances our credit profile
and improves our ability to continue to meet our financial
obligations as we focus on reducing debt, improving our cost
structure and positioning the company to deliver increased
shareholder returns."
The term loan will have a 4.5-year term and bear interest at a
rate of LIBOR plus 8.00% per annum and be issued at 98% of par. The
term loan will be secured by the same collateral securing
Chesapeake's existing revolving credit facility (with a position in
the collateral proceeds waterfall junior to its existing revolving
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 Chesapeake's existing revolving credit
facility, including Brazos Valley and its subsidiaries upon the
closing of the term loan facility.
The term loan is expected to close on or around December 23, 2019, subject to the execution of
the final documentation, the success of the consent solicitation
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.
This news release includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including the
amount and terms of the term loan, the timing of closing and the
use of proceeds thereof. Forward-looking statements are statements
other than statements of historical fact. Although we believe the
expectations and forecasts reflected in the 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.
Factors that could cause actual results to differ materially from
expected results include our ability to comply with the covenants
under our revolving credit facilities and other indebtedness and
the related impact on our ability to continue as a going concern,
the volatility of oil, natural gas and NGL prices and other factors
described under "Risk Factors" in Item 1A of our annual report on
Form 10-K and any updates to those factors set forth in
Chesapeake's subsequent quarterly reports on Form 10-Q or current
reports on Form 8-K.
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