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OKLAHOMA CITY, JUNE 26 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it intends to commence a public
offering of $500 million of a new issue of mandatory convertible preferred
stock with a liquidation preference of $250 per share. Chesapeake intends to
use the net proceeds from the offering, together with proceeds from concurrent
public offerings of senior notes and common stock, to fund its recently
announced Barnett Shale acquisitions for $932 million, to repay outstanding
indebtedness under its revolving credit facility and for general corporate
purposes.
The offering will be made under a shelf registration statement that became
effective on December 8, 2005. The company intends to grant underwriters a
30-day option to purchase a maximum of $75 million in additional shares of
mandatory convertible preferred stock.
Goldman, Sachs & Co., Banc of America Securities LLC, Credit Suisse,
Lehman Brothers Inc. and UBS Securities LLC will act as joint book-running
managers for the Offering. The Offering is being made only by means of a
prospectus and related prospectus supplement, copies of which may be obtained
from Goldman, Sachs & Co., Attn: Prospectus Dept., 85 Broad Street, New York,
NY 10004, Fax: 212 902 9316 or email at prospectus-ny@ny.email.gs.com; Banc of
America Securities LLC, Attn: Prospectus Department, 100 West 33rd Street, New
York, NY 10001, 646-733-4166; Credit Suisse, One Madison Avenue, Level 1B, New
York, NY 10010, 212-325-2580; Lehman Brothers Inc., c/o ADP Financial
Services, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood,
NY 11717; UBS Securities LLC, Prospectus Department, 299 Park Avenue, 29th
Floor, New York, NY 10171, 212-821-3000. An electronic copy of the prospectus
and prospectus supplement is available from the Securities and Exchange
Commission's website at http://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 state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any state.
This document 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. 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.
Chesapeake Energy Corporation is the second largest independent 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 Mid-Continent, Permian Basin, South Texas,
Texas Gulf Coast, Barnett Shale, Ark-La-Tex and Appalachian Basin regions of
the United States. The company's Internet address is http://www.chkenergy.com.
SOURCE: Chesapeake Energy Corporation
CONTACT: Jeffrey L. Mobley, CFA and Senior Vice President of Investor
Relations And Research, +1-405-767-4763, jmobley@chkenergy.com, or Marc
Rowland, Executive Vice President And Chief Financial Officer,
+1-405-879-9232, mrowland@chkenergy.com, both of Chesapeake Energy
Corporation