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OKLAHOMA CITY, Aug 13, 2008 (BUSINESS WIRE) -- Chesapeake Energy Corporation (NYSE: CHK) today announced that it
is soliciting consents (the "Consent Solicitation") from the holders
of its outstanding senior notes listed below (the "Notes").
Principal Amount
CUSIP Series Outstanding
------------------- ------------------------------ -------------------
165167BC0 7.50% Senior Notes due 2013 $363,823,000
165167BG1 7.50% Senior Notes due 2014 $300,000,000
165167BJ5 7.00% Senior Notes due 2014 $300,000,000
165167BL0 6.375% Senior Notes due 2015 $600,000,000
165167BE6 6.875% Senior Notes due 2016 $670,437,000
The purpose of the Consent Solicitation is to amend the indentures
under which each series of Notes was issued to conform the definition
of "Unrestricted Subsidiary Indebtedness" to the corresponding
definition of such term in the indentures related to Chesapeake's $600
million principal amount of 6.625% Senior Notes due 2016 and $600
million principal amount of 6.25% Senior Notes due 2018.
Following the Consent Solicitation, Chesapeake intends to transfer
certain of its midstream assets to a newly formed group of
subsidiaries and designate such subsidiaries as unrestricted
subsidiaries under each of the indentures. Additionally, such
subsidiaries would become obligors under a new revolving credit
facility that is anticipated to provide for borrowings of up to $750
million, which would be used by such subsidiaries for capital
expenditures and general corporate purposes.
Holders of the Notes are referred to Chesapeake's Consent
Solicitation Statement dated August 13, 2008 and the related Letter of
Consent, which are being sent to holders, for the detailed terms and
conditions of the Consent Solicitation.
Chesapeake will pay a consent fee of $3.75 in cash for each $1,000
principal amount of Notes for which consents are received, subject to
the terms of the Consent Solicitation. The record date for determining
the holders who are entitled to consent is 5:00 p.m., New York City
time, on August 13, 2008.
The Consent Solicitation will expire at 5:00 p.m., New York City
time, on August 22, 2008, unless extended with respect to one or more
series of Notes. Subject to the satisfaction of the conditions to the
solicitation, the proposed amendment will become effective as to an
indenture promptly following receipt of the requisite consents and
payment of the consent fees with respect to such amendment.
Chesapeake has retained D. F. King & Company, Inc. to serve as its
information agent for the Consent Solicitation. Requests for documents
should be directed to D. F. King & Company, Inc. at (800) 549-6697 or
(212) 269-5550. Chesapeake has also retained Banc of America
Securities LLC as solicitation agent for the Consent Solicitation.
Questions concerning the terms of the Consent Solicitation should be
directed to Banc of America Securities LLC, Debt Advisory Services, at
(888) 292-0070 (US toll-free) or (704) 388-4813 (collect).
Chesapeake Energy Corporation is the 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. Further information is
available at www.chk.com.
This press release includes "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
give our current expectations or forecasts of future events. We
caution you not to place undue reliance on our forward-looking
statements, which speak only as of the date of this press release, and
we undertake no obligation to update this information.
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