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OKLAHOMA CITY--(BUSINESS WIRE)--May 19, 2008--Chesapeake Energy
Corporation (NYSE:CHK) today announced that it is commencing a public
offering of $800 million of senior notes due 2018. Chesapeake intends
to use the net proceeds from the offering, together with proceeds from
the concurrent public offering of contingent convertible senior notes,
to fund the redemption of its 7.75% Senior Notes due 2015, to repay
outstanding indebtedness under its revolving credit facility and for
general corporate purposes.
The senior notes are being offered pursuant to a registration
statement filed today with the U.S. Securities and Exchange
Commission. Chesapeake intends to list the notes on the New York Stock
Exchange after issuance.
Credit Suisse, Banc of America Securities, Lehman Brothers,
Deutsche Bank Securities and RBS Greenwich Capital 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 Credit Suisse Securities (USA) LLC,
Prospectus Department, One Madison Avenue, New York, NY 10010,
1-800-221-1037. 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 the third-largest producer 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 Fort Worth Barnett Shale,
Fayetteville Shale, Haynesville Shale, Mid-Continent, Appalachian
Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast
and Ark-La-Tex regions of the United States.
CONTACT: Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
Senior Vice President - Investor Relations and Research
jeff.mobley@chk.com
or
Marc Rowland, 405-879-9232
Executive Vice President and Chief Financial Officer
marc.rowland@chk.com
SOURCE: Chesapeake Energy Corporation