Chesapeake Oilfield Operating, L.L.C. Announces $500 Million Private Placement of Senior Notes Due 2022
June 09 2014 - 6:00AM
Business Wire
Chesapeake Oilfield Operating, L.L.C. (the “Company”), to be
renamed Seventy Seven Energy Inc. in connection with its previously
announced spin-off from Chesapeake Energy Corporation, announced
today that, subject to market conditions, it intends to offer for
sale $500 million in aggregate principal amount of senior unsecured
notes due 2022 in a private placement under Rule 144A and
Regulation S of the Securities Act of 1933, as amended (the
“Securities Act”), to eligible purchasers.
The Company intends to use the net proceeds from the private
placement to make a cash distribution to COS Holdings, L.L.C., its
direct parent, to repay all indebtedness outstanding under its new
revolving credit facility to be entered into in connection with the
spin-off and for general corporate purposes.
The securities to be offered have not been registered under the
Securities Act, or any state securities laws, and unless so
registered, the securities may not be offered or sold in the United
States except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act
and applicable state securities laws. The Company plans to offer
and sell the notes only to qualified institutional buyers pursuant
to Rule 144A under the Securities Act and to persons outside
the United States pursuant to Regulation S under the Securities
Act.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any of these securities, 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 such
states.
About Chesapeake Oilfield Operating,
L.L.C. (to be renamed Seventy Seven Energy Inc.)
Chesapeake Oilfield Operating, L.L.C. is currently an
indirect wholly-owned subsidiary of Chesapeake Energy
Corporation. The Company is a diversified oilfield services
company that provides a wide range of wellsite services and
equipment to U.S. land-based exploration and production customers
operating in unconventional resource plays. The Company’s primary
services include drilling, hydraulic fracturing, oilfield rentals,
rig relocation and water transport and disposal. The Company
is headquartered in Oklahoma City, Oklahoma.
This press release includes statements that may constitute
forward-looking statements. Such forward-looking statements are
subject to a variety of known and unknown risks, uncertainties, and
other factors that are difficult to predict and many of which are
beyond management’s control. Factors that can affect future results
are discussed in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2013, and other reports filed by the
Company from time to time with the Securities and Exchange
Commission. The Company undertakes no obligation to update or
revise any forward-looking statement to reflect new information or
events
Seventy Seven EnergyInvestor Contact:Cary
Baetz, 405-608-7777ir@77nrg.comorMedia Contact:Bob
Jarvis, 405-935-2572bob.jarvis@77nrg.com
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