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OKLAHOMA CITY, May 20, 2008 (BUSINESS WIRE) -- Chesapeake Energy Corporation (NYSE:CHK) today announced that it
has priced its previously announced public offering of $800 million
aggregate principal amount of senior notes due 2018, which will carry
an interest rate of 7.25% per annum. The senior notes were priced at
100% of par. Chesapeake expects the issuance and delivery of the
senior notes to occur on May 27, 2008, subject to customary closing
conditions.
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 were offered pursuant to a registration statement
filed on May 19, 2008 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 LLC, Deutsche Bank
Securities, Lehman Brothers and RBS Greenwich Capital acted as joint
book-running managers for the senior notes offering. Copies of the
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 prospectus supplement is 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.
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.
SOURCE: Chesapeake Energy Corporation
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