Chesapeake Energy Corporation Prevails in Bond Litigation
Company Will Proceed with Special Early Redemption of 6.775%
Senior Notes Due 2019 on May 13, 2013
Chesapeake Energy Corporation (NYSE:CHK) today announced that the United
States District Court for the Southern District of New York has ruled in
Chesapeake′s favor, enabling the company to redeem its $1.3 billion of
6.775% Senior Notes due 2019 (the 'Notes?) at par pursuant to the
Special Early Redemption provision of the Notes.
Following a bench trial, the Hon. Paul A. Engelmayer ruled that
Chesapeake′s notice to redeem the Notes at par, which was provided on
March 15, 2013, was timely and effective pursuant to the Special Early
Redemption provision of the Notes. The company initiated this legal
action on March 8, 2013 against the trustee for the Notes, The Bank of
New York Mellon Trust Company, N.A., to confirm Chesapeake′s right to
redeem the Notes at par.
Accordingly, the company will proceed with its Special Early Redemption
of the Notes, with payment expected to be made on May 13, 2013 pursuant
to the terms of the notice. The company intends to proceed with the
Special Early Redemption even if the trustee appeals the Court′s ruling,
unless the Court′s ruling is stayed. Chesapeake′s redemption of the
Notes is part of a broader refinancing of its outstanding debt
obligations.
Domenic J. Dell′Osso, Jr., Chesapeake′s Chief Financial Officer,
commented, 'We are pleased that the Court has ruled in Chesapeake′s
favor. We expect the refinancing of the Notes to save the Company more
than $100 million in interest payments.?
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.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 assumptions or by known or unknown risks and uncertainties,
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
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
