Chesapeake Energy (ticker: CHK, exchange: New York Stock Exchange (.N))
News Release -
Chesapeake Energy Corporation Announces Offering of $300 Million of Senior Notes
Printer Friendly Version (pdf format)
OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 10, 2009--
Chesapeake Energy Corporation (NYSE:CHK) today announced that it is
commencing a public offering of an additional $300 million of its
existing 9.50% Senior Notes due 2015. Chesapeake intends to use the net
proceeds from the offering to repay outstanding indebtedness under its
revolving bank credit facility, which it anticipates reborrowing from
time to time to fund drilling and leasehold acquisition initiatives and
for general corporate purposes.
The senior notes are being offered pursuant to a shelf registration
statement filed on January 27, 2009 with the U.S. Securities and
Exchange Commission. Chesapeake intends to list the notes on the New
York Stock Exchange after issuance.
The notes issued in this offering will be issued as additional
securities under an indenture pursuant to which Chesapeake issued $1.0
billion of its 9.50% Senior Notes due 2015 on February 2, 2009. The
notes issued in this offering and the existing notes will be treated as
a single class of notes under the indenture.
Banc of America Securities LLC and Deutsche Bank Securities will act as
joint book-running managers for the senior notes offering. Copies of the
preliminary prospectus supplement relating to the offering may be
obtained from the offices of Banc of America Securities LLC, Attn:
Prospectus Department, 100 West 33rd Street, New York, NY
10001, (646) 733-4166. An electronic copy of the preliminary prospectus
supplement will be available on the website of the Securities and
Exchange Commission at www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction.
This press release contains 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 expected consummation
of the offering described and the use of proceeds. Forward-looking
statements include estimates and give our current expectations or
forecasts of future events. Although we believe our forward-looking
statements are reasonable, they can be affected by inaccurate
assumptions or by known or unknown risks and uncertainties, and actual
results may differ from the expectations expressed.
Chesapeake Energy Corporation is one of the largest producers of
natural gas in the U.S. Headquartered in Oklahoma City, the
company's operations are focused on exploratory and developmental
drilling and corporate and property acquisitions in the Barnett Shale,
Haynesville Shale, Fayetteville Shale, Marcellus Shale, Anadarko Basin,
Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin, South
Texas, Texas Gulf Coast and East Texas regions of the United States.
Source: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
Vice President -
Investor Relations and Research
Executive Vice President