Chesapeake Oilfield Operating, L.L.C. Announces Pricing of $500 Million Private Placement of 6.5% Senior Notes Due 2022
June 12 2014 - 6:54PM
Business Wire
Chesapeake Oilfield Operating, L.L.C., (the “Company”), an
indirect wholly-owned subsidiary of Chesapeake Energy Corporation
(“Chesapeake”) (NYSE: CHK) that will be renamed Seventy Seven
Energy Inc. in connection with its previously announced spin-off
from Chesapeake, announced today the pricing of $500 million in
aggregate principal amount of 6.5% senior unsecured notes due 2022
(the “Notes”) 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 Notes mature on July
15, 2022 and will be issued at par.
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 outstanding indebtedness under the
Company’s new asset backed lending credit facility to be entered
into in connection with the spin-off and for general corporate
purposes. The offering of the Notes is not conditioned on the
consummation of the spin-off from Chesapeake.
The offering of the Notes is expected to close on June 26, 2014,
subject to customary conditions.
The securities to be sold 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.
Chesapeake Energy Corporation (NYSE:CHK) is the
second-largest producer of natural gas and the 10th largest
producer of oil and natural gas liquids in the U.S.
Headquartered in Oklahoma City, the company's operations are
focused on discovering and developing its large and geographically
diverse resource base of unconventional natural gas and oil assets
onshore in the U.S. The company also owns substantial
marketing, compression and oilfield services businesses. Further
information is available at www.chk.com where
Chesapeake routinely posts announcements, updates, events, investor
information, presentations and news releases.
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.
Chesapeake Energy CorporationInvestor Contact:Gary
T. Clark, CFA, 405-935-8870ir@chk.comorMedia Contact:Gordon
Pennoyer, 405-935-8878media@chk.com
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