OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 13, 2012--
Chesapeake Energy Corporation (NYSE:CHK) today announced that it has
priced its previously announced public offering of $1.3 billion
principal amount of Senior Notes due 2019, which will carry an interest
rate of 6.775% per annum. The senior notes were priced at 98.75% of par
to yield 7%. The offering was increased from a previously announced
offering size of $1.0 billion, resulting in net proceeds to Chesapeake
of $1.26 billion after deducting underwriting discounts and commissions.
Chesapeake expects the issuance and delivery of the senior notes to
occur on February 16, 2012, subject to customary closing conditions.
Chesapeake intends to use the net proceeds from the offering for general
corporate purposes. Pending such use, Chesapeake plans to use the net
proceeds from the offering to repay amounts outstanding under its
revolving bank credit facility, which it anticipates reborrowing from
time to time to meet capital expenditure initiatives.
The notes were offered pursuant to an effective shelf registration
statement filed August 3, 2010 with the U.S. Securities and Exchange
Commission. Chesapeake intends to list the notes on the New York Stock
Exchange after issuance. BofA Merrill Lynch, Deutsche Bank Securities
Inc., Goldman, Sachs & Co., Morgan Stanley & Co. LLC and RBS Securities
Inc. acted as joint book-running managers for the offering. Copies of
the prospectus relating to the offering may be obtained from BofA
Merrill Lynch at 4 World Financial Center, 7th Floor, New York, NY
10080, attention: Prospectus Department, by telephone at 1-800-294-1322
or by email at firstname.lastname@example.org
or Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick
Street, 2nd Floor New York, NY 10014, by telephone at (866) 718-1649 or
by email at email@example.com.
An electronic copy of the preliminary 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 (NYSE:CHK) is the second-largest
producer of natural gas, a Top 15 producer of oil and natural gas
liquids 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,
Haynesville, Bossier, Marcellus and Pearsall natural gas shale plays and
in the Granite Wash, Cleveland, Tonkawa, Mississippi Lime, Bone Spring,
Avalon, Wolfcamp, Wolfberry, Eagle Ford, Niobrara, Frontier, Codell,
Three Forks/Bakken and Utica unconventional liquids plays. The
company has also vertically integrated its operations and owns
substantial midstream, compression, drilling, trucking, pressure pumping
and other oilfield service assets directly and indirectly through its
subsidiaries Chesapeake Midstream Development, L.P. and Chesapeake
Oilfield Services, L.L.C. and its affiliate Chesapeake Midstream
Partners, L.P. (NYSE:CHKM). Further information is
available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
This news 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 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. We caution you not to place undue reliance on our
forward-looking statements, which speak only as of the date of this news
release, and we undertake no obligation to update this information.
Source: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Mobley, CFA, 405-767-4763
J. Kilgallon, 405-935-4441
Michael Kehs, 405-935-2560