Chesapeake Energy Corporation Announces Pricing of $2.3 Billion Senior Notes Offering
Chesapeake Energy Corporation (NYSE:CHK) today announced that it has
priced its previously announced public offering of $2.3 billion in
aggregate principal amount of its senior notes at par. As previously
announced, the offering will include three series of notes: $500 million
in 3.25% Senior Notes due 2016; $700 million in 5.375% Senior Notes due
2021; and $1.1 billion in 5.75% Senior Notes due 2023. Chesapeake
expects the issuance and delivery of all three series of senior notes to
occur on April 1, 2013, subject to customary closing conditions.
Chesapeake intends to use a portion of the net proceeds from the
offering to purchase the portion of its 7.625% Senior Notes due 2013 and
6.875% Senior Notes due 2018 that are tendered in its concurrent tender
offers for such notes. Chesapeake plans to use a substantial portion of
the remaining net proceeds to redeem its 6.775% Senior Notes due 2019 at
par value (subject to receipt of a favorable ruling in a declaratory
judgment action currently pending with respect to Chesapeake′s ability
to redeem such notes at par value). To the extent that any portion of
the net proceeds of the offering is not used as described above,
Chesapeake plans to use such net proceeds to purchase, repay and/or
redeem any of its 7.625% Senior Notes due 2013 not tendered in the
concurrent tender offer and to purchase, repay and/or redeem over time
other outstanding indebtedness, including indebtedness outstanding under
its corporate revolving bank credit facility.
The senior 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. Morgan Stanley & Co. LLC, Credit
Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Goldman
Sachs & Co. and Wells Fargo Securities, LLC acted as joint book-running
managers for the offering. Copies of the prospectus relating to the
offering may be obtained from 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 prospectus@morganstanley.com
or Credit Suisse at Credit Suisse Securities (USA) LLC, Attn: Prospectus
Department, One Madison Avenue, New York, NY 10010, by telephone at
(800) 221-1037 or by email at newyork.prospectus@credit-suisse.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. This press release shall not
constitute an offer to purchase or a solicitation of an offer to sell
Chesapeake′s 7.625% Senior Notes due 2013 or 6.875% Senior Notes due
2018 in the concurrent tender offers. The concurrent tender offers are
being made only by and pursuant to, and on the terms and subject to the
conditions set forth in, the Offer to Purchase dated March 18, 2013 and
the related Letter of Transmittal.
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas, a top 11 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 Eagle Ford,
Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara
unconventional liquids plays and in the Marcellus, Haynesville/Bossier
and Barnett unconventional natural gas shale plays. The company also
owns substantial marketing and oilfield services businesses through its
subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield
Operating, L.L.C. Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
This news release includes 'forward-looking statements' that give
Chesapeake's current expectations or forecasts of future events,
including the expected consummation of the offering described and the
use of proceeds.Although we believe the expectations and
forecasts reflected in our forward-looking statements are reasonable, we
can give no assurance they will prove to have been correct.They
can be affected by inaccurate or changed assumptions or by known or
unknown risks and uncertainties (including those stated in Chesapeake′s
Annual Report on Form 10-K for the year ended December 31, 2012), and
actual results may differ from the expectation 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.
Chesapeake Energy Corporation
Chesapeake Contacts:
Jeffrey L.
Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
Gary
T. Clark, CFA, 405-935-6741
gary.clark@chk.com
or
Media
Contacts:
Michael Kehs, 405-935-2560
michael.kehs@chk.com
or
Jim
Gipson, 405-935-1310
jim.gipson@chk.com
