Chesapeake Energy Corporation Announces the Expiration and Final Results of Cash Tender Offers for Senior Notes
Chesapeake Energy Corporation (NYSE: CHK) today announced the expiration
and final results of its previously announced cash tender offers, which
were extended on April 29, 2011, to purchase a portion of the
outstanding principal amount of its 9.500% Senior Notes due 2015 and
6.500% Senior Notes due 2017 (collectively, the 'Notes?). The tender
offers for the Notes expired at 11:59 P.M., New York City time, on May
13, 2011. An aggregate of $599,917,000in principal amount of the
Notes was validly tendered and accepted for purchase in the tender
offers. Chesapeake expects the final settlement of the tender offers for
the Notes to occur today. Combined with separate tender offers for
certain other series of senior notes and contingent convertible senior
notes that expired previously, and open market purchases of certain
series of contingent convertible senior notes, Chesapeake has retired an
aggregate of $1,664,449,000in principal amountof
dollar-denominated senior notes and contingent convertible senior notes
and €255,835,000 in principal amount of euro-denominated senior notes in
2011.
| Notes | CUSIP Number/ISIN Number/ Common Code | Principal Amount Outstanding | Series Maximum | Principal Amount Tendered | Principal Amount Accepted for Purchase | |||||
9.500% Senior Notes due 2015(1) | 165167CD7 | $1,425,000,000 | $138,435,000 | $160,303,000 | $160,303,000 | |||||
6.500% Senior Notes due 2017(1) | 165167BS5 | $1,100,000,000 | $438,961,000 | $439,614,000 | $439,614,000 | |||||
(1) Chesapeake accepted an additional amount of the Notes not
in excess of two percent of the principal amount outstanding of such
series of Notes, as permitted by Rule 14e-1(b) under the Securities
Exchange Act of 1934.
The tender offers for the Notes were made pursuant to the terms of an
Offer to Purchase dated April 4, 2011 (as amended, the 'Offer to
Purchase') and the related Letter of Transmittal. The table above sets
forth the principal amount of each series of Notes that Chesapeake
offered to purchase in the column entitled 'Series Maximum,' the
principal amount of each series of Notes that was tendered and the
principal amount of each series of Notes that was accepted for purchase.
Global Bondholder Services Corporation served as the Depositary and
Information Agent for the tender offers. Deutsche Bank Securities Inc.,
Citigroup Global Markets Inc. and RBS Securities Inc. served as the
Dealer Managers for the tender offers. Questions regarding the tender
offers may be directed to the Dealer Managers at the addresses and
telephone numbers set forth below:
Deutsche Bank Securities Inc.
By Telephone:
| Citigroup Global Markets Inc.
By Telephone:
| RBS Securities Inc.
By Telephone:
| ||||||
This announcement is not an offer to purchase or a solicitation of an
offer to sell the Notes or any other securities. The tender offers were
made solely pursuant to the Offer to Purchase and the related Letter of
Transmittal.
This news release contains forward-looking statements, including the
anticipated settlement dates of the tender offers.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. See the 'Risk Factors? discussion in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2010 filed with the
U.S. Securities and Exchange Commission on March 1, 2011 for a
discussion of risk factors that affect our business.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.
Chesapeake Energy Corporation 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, Mississippian, Bone Spring,
Avalon, Wolfcamp, Wolfberry, Eagle Ford, Niobrara and Utica
unconventional liquids plays.The company has also
vertically integrated its operations and owns substantial midstream,
compression, drilling and oilfield service assets.Chesapeake′s
stock is listed on the New York Stock Exchange under the symbol CHK.Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and press releases.
Chesapeake Energy Corporation
Investor Relations:
Jeffrey L.
Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
John
J. Kilgallon, 405-935-4441
john.kilgallon@chk.com
or
Media
Relations:
Jim Gipson, 405-935-1310
jim.gipson@chk.com
