OKLAHOMA CITY, Aug 17, 2010 (BUSINESS WIRE) --
Chesapeake Energy Corporation (NYSE:CHK) today announced that it has
received and accepted for purchase $245,051,000 principal amount of its
outstanding 7.00% Senior Notes due 2014, $566,242,000 principal amount
of its outstanding 6.625% Senior Notes due 2016 and $582,263,000
principal amount of its outstanding 6.25% Senior Notes due 2018
(collectively, the "Notes") validly tendered and not validly withdrawn
as of 5:00 P.M., New York City time, on August 16, 2010, which was the
consent time (the "Consent Time") for Chesapeake's previously announced
cash tender offers and consent solicitations with respect to the Notes.
Chesapeake has also received consents from holders of a sufficient
percentage of each series of Notes to amend the respective indentures
governing the Notes as described in the Offer to Purchase and Consent
Solicitation Statement dated August 3, 2010 (the "Statement"). The
proposed amendments eliminate substantially all of the restrictive
covenants and certain events of default and related provisions in the
indentures. Chesapeake intends to promptly execute supplemental
indentures effecting the proposed amendments to the indentures, which
are binding on the holders of Notes not purchased in the tender offers.
Chesapeake has also announced that it will redeem for cash all Notes of
each series that remain outstanding after the consummation of the tender
offers at redemption prices of $1,023.33 per $1,000 principal amount of
7.00% Senior Notes due 2014, $1,033.13 per $1,000 principal amount of
6.625% Senior Notes due 2016, and $1,031.25 per $1,000 principal amount
of 6.25% Senior Notes due 2018, in each case, plus accrued and unpaid
interest on the Notes up to, but not including, the redemption date.
Holders may obtain copies of the official notices of redemption by
calling The Bank of New York Mellon Trust Company, N.A., the trustee for
each series of Notes, toll free at (800) 254-2826.
Payment of the redemption price will be made on or about September 16,
2010 upon presentation and surrender of the Notes by mail or hand
delivery to The Bank of New York Mellon Trust Company, N.A., 111 Sanders
Creek Parkway, East Syracuse, New York 13057, Attention: Debt Processing
Group. Unless Chesapeake defaults in making the redemption payments,
interest on each series of Notes listed above will cease to accrue on
and after the redemption date and the only remaining right of the
holders thereof is to receive the redemption payment upon surrender to
The Bank of New York Mellon Trust Company, N.A. of the Notes.
Credit Suisse Securities (USA) LLC is the Dealer Manager for the tender
offers and Solicitation Agent for the consent solicitations. Questions
regarding the tender offers and consent solicitations may be directed to
Credit Suisse Securities (USA) LLC toll free at (800) 820-1653 and
collect at (212) 325-5912. Holders may obtain copies of the Statement
and the related Letter of Transmittal and Consent from the Information
Agent and Depositary for the tender offers, Global Bondholder Services
Corporation, collect at (212) 430-3774 and toll free at (866) 952-2200.
This announcement is not an offer to purchase, a solicitation of an
offer to purchase, or a solicitation of an offer to sell securities with
respect to the Notes, nor is it a notice of redemption with respect to
the redemptions described above. The tender offers are being made
pursuant to the terms of the Statement and the related Letter of
Transmittal and Consent.
Chesapeake Energy Corporation is the second-largest producer of
natural gas and the most active driller of new wells in the U.S.Headquartered
in Oklahoma City, the company's operations are focused on discovering
and developing unconventional natural gas and oil fields onshore in the
U.S. Chesapeake owns leading positions in the Barnett, Fayetteville,
Haynesville, Marcellus and Bossier natural gas shale plays and in the
Eagle Ford, Granite Wash and various other unconventional oil plays. The
company has also vertically integrated its operations and owns
substantial midstream, compression, drilling and oilfield service assets.
SOURCE: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Investor Contacts:
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
John J. Kilgallon, 405-935-4441
john.kilgallon@chk.com
or
Media Contact:
Jim Gipson, 405-935-1310
jim.gipson@chk.com