Chesapeake Energy (ticker: CHK, exchange: New York Stock Exchange (.N))
News Release -
Chesapeake Energy Corporation Announces Private Offering of $400 Million Cumulative Convertible Preferred StockPrinter Friendly Version (pdf format)
OKLAHOMA CITY, April 12 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it intends to commence a private
placement offering to eligible purchasers of $400 million of a new series of
its cumulative convertible preferred stock with a stated value of $100 per
share. The offering is expected to be eligible for resale under Rule 144A.
The private offering, which is subject to market and other conditions, will be
made within the United States only to qualified institutional buyers, and
outside the United States only to non-U.S. investors under Regulation S of the
Securities Act of 1933.
Chesapeake intends to use the net proceeds of the offering to partially
fund approximately $686 million of recently announced acquisitions of oil and
gas properties, or in the event the acquisitions are not consummated, to repay
debt under its bank credit facility.
The company also intends to grant a 30-day option to the initial
purchasers to purchase a maximum of $60 million stated value in additional
shares of convertible preferred stock to cover any over-allotments in the
The preferred stock has not been registered under the Securities Act of
1933 or applicable state securities laws, and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable state laws.
This announcement shall not constitute an offer to sell or a solicitation of
an offer to buy the preferred stock.
This document 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. 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.
Chesapeake Energy Corporation is the fourth largest independent producer
of natural gas in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and producing
property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas
Gulf Coast and Ark-La-Tex regions of the United States.
SOURCE Chesapeake Energy Corporation
CONTACT: Marc Rowland, Executive Vice President And Chief Financial
Officer, +1-405-879-9232, or Tom Price, Jr., Senior Vice President - Investor
Relations, +1-405-879-9257, both of Chesapeake Energy Corporation
Web site: http://www.chkenergy.com