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OKLAHOMA CITY--(BUSINESS WIRE)--Aug. 8, 2007--Chesapeake Energy
Corporation (NYSE:CHK) today announced that it is commencing a public
offering of an additional $500 million aggregate principal amount of
its existing 2.50% Contingent Convertible Senior Notes due 2037 (the
Notes). The Notes will be convertible, under certain circumstances,
using a net share settlement process, into a combination of cash and
Chesapeake common stock. In general, upon conversion of a Note, the
holder of such Note will receive cash equal to the principal amount of
the Note and common stock for the Note's conversion value in excess of
the principal amount of the Note.
Chesapeake intends to use the net proceeds from the offering to
repay outstanding indebtedness under its revolving credit facility.
The Notes are being offered pursuant to a registration statement filed
on May 8, 2007 with the U.S. Securities and Exchange Commission.
Chesapeake intends to list the Notes on the New York Stock Exchange
Deutsche Bank Securities Inc. will act as Sole Book-Running
Manager for the offering. Copies of the preliminary prospectus
supplement and records relating to the offering may be obtained from
the offices of Deutsche Bank Securities Inc. by writing to Deutsche
Bank Securities Prospectus Department, 100 Plaza One, Second Floor,
Jersey City, NJ 07311 or by calling 800-503-4611. An electronic copy
of the prospectus supplement will be available on the website of the
Securities and Exchange Commission at www.sec.gov.
The Notes issued in this offering will be issued as additional
securities under an indenture pursuant to which Chesapeake issued
$1.150 billion of 2.50% Contingent Convertible Notes on May 15, 2007.
The Notes issued in this offering and the prior Notes will be treated
as a single class of notes under the indenture but will not be
fungible and will have different CUSIP numbers.
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 state or country in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such state or country.
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 largest independent producer
and third-largest overall producer of natural gas in the United
States. Headquartered in Oklahoma City, the company's operations are
focused on exploratory and developmental drilling and corporate and
property acquisitions in the Mid-Continent, Fort Worth Barnett Shale,
Fayetteville Shale, Permian Basin, Delaware Basin, South Texas, Texas
Gulf Coast, Ark-La-Tex and Appalachian Basin regions of the United
CONTACT: Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA
Senior Vice President - Investor Relations and Research
Executive Vice President
and Chief Financial Officer
SOURCE: Chesapeake Energy Corporation