Chesapeake Energy (ticker: CHK, exchange: New York Stock Exchange (.N))
News Release -
Chesapeake Energy Corporation Announces Final Results of Senior Notes Exchange OfferPrinter Friendly Version (pdf format)
OKLAHOMA CITY, Jan. 13 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that pursuant to its previously
announced exchange offer (the "Offer") for its 8.125% Senior Notes due
April 1, 2011 (the "2011 Notes") (CUSIP # 165167AS6), it received valid
tenders of approximately $458.5 million aggregate principal amount of
2011 Notes as of January 12, 2004, the expiration date.
Approximately $71.5 million aggregate principal amount of 2011 Notes were
tendered in exchange for new 7.75% Senior Notes due 2015 and approximately
$387.0 million aggregate principal amount of 2011 Notes were tendered in
exchange for new 6.875% Senior Notes due 2016.
Holders who validly tendered their 2011 Notes by 5:00 p.m., Eastern
Standard Time, on January 9, 2004, the early participation date, will receive,
in addition to new notes, $10.00 in cash per $1,000 principal amount of Notes
validly tendered and accepted for exchange.
The Offer expired at 12:00 midnight, Eastern Standard Time, on
January 12, 2004. Payment for all 2011 Notes validly tendered and accepted
for exchange is expected to be made on January 14, 2004.
The terms of the Offer are described in the Company's Offer to Exchange
dated December 1, 2003, as extended by a prospectus supplement dated
December 24, 2003, copies of which may be obtained from D.F. King & Co., Inc.,
the information agent for the Offer, at (800) 431-9633 (U.S. toll-free) and
(212) 269-5550 (collect).
Banc of America Securities LLC, Deutsche Bank Securities and Lehman
Brothers served as the joint lead dealer managers in connection with the
Offer. Questions regarding the Offer may be directed to Banc of America
Securities LLC, High Yield Special Products, at 888-292-0070 (US toll-free)
and 704-388-4813 (collect), Deutsche Bank Securities, High Yield Capital
Markets, 212-250-7466 (collect) or Lehman Brothers, 800-438-3242 (U.S. toll-
free) and 212-528-7581 (collect).
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an
offer, solicitation or sale in any jurisdiction in which such offering,
solicitation or sale would be unlawful.
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 one of the six largest independent
natural gas producers in the United States. Headquartered in Oklahoma City,
the company's operations are focused on exploratory and developmental drilling
and producing property acquisitions in the Mid-Continent, Gulf Coast, and
Permian Basin regions onshore in 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