OKLAHOMA CITY, Dec. 31, 2015 /PRNewswire/ -- Chesapeake Energy
Corporation (NYSE:CHK) today announced the final results of its
private offers to exchange (the "Exchange Offers") new 8.00% Senior
Secured Second Lien Notes due 2022 (the "Second Lien Notes") for
certain outstanding senior unsecured notes listed in the table
below (the "Existing Notes"). As of 11:59
p.m., New York City time,
on December 30, 2015 (the "Expiration
Date"), approximately $3.8 billion
aggregate principal amount, or approximately 41.5%, of Existing
Notes had been validly tendered and not validly withdrawn. The
following table sets forth the approximate aggregate principal
amounts of each series of Existing Notes that were validly tendered
and not validly withdrawn on or prior to the Expiration Date.
|
Title of
Series
|
|
Aggregate
Principal
Amount Outstanding
Prior to Exchange
Offers (in millions)
|
|
Acceptance
Priority
Level
|
|
Approximate
Aggregate Principal
Amount of Existing
Notes Tendered (in
millions)
|
6.25%
euro-denominated senior notes due 2017
|
|
$378.1(1)
|
|
1
|
|
$46.2(1)
|
6.5% senior notes due
2017
|
|
$660.4
|
|
2
|
|
$207.3
|
7.25% senior notes
due 2018
|
|
$668.6
|
|
3
|
|
$131.0
|
Floating rate senior
notes due 2019
|
|
$1,500.0
|
|
4
|
|
$395.7
|
6.625% senior notes
due 2020
|
|
$1,300.0
|
|
5
|
|
$477.9
|
6.875% senior notes
due 2020
|
|
$500.0
|
|
5
|
|
$195.8
|
6.125% senior notes
due 2021
|
|
$1,000.0
|
|
6
|
|
$410.7
|
5.375% senior notes
due 2021
|
|
$700.0
|
|
6
|
|
$413.8
|
4.875% senior notes
due 2022
|
|
$1,500.0
|
|
6
|
|
$860.8
|
5.75% senior notes
due 2023
|
|
$1,100.0
|
|
6
|
|
$715.6
|
|
|
|
|
|
|
|
(1)
|
Based on the exchange
ratio of $1.0986 to €1.00 as of 5:00 p.m., New York City time, on
December 11, 2015, as set forth by the Bloomberg EURUSD Spot
Exchange Rate.
|
The settlement date for Existing Notes validly tendered and not
validly withdrawn prior to 5:00 p.m.,
New York City time, on
December 18, 2015 (the "Early Tender
Date") occurred on December 23,
2015. Today, the Company will issue approximately
$13.4 million aggregate principal
amount of additional Second Lien Notes for Existing Notes validly
tendered after the Early Tender Date and prior to the Expiration
Date in exchange for such Existing Notes.
The Company will also make a cash payment equal to the accrued
and unpaid interest on such Existing Notes accepted for exchange
from the applicable latest interest payment date to, but not
including, today. Interest on the Second Lien Notes is accruing
from the date of first issuance of Second Lien Notes on
December 23, 2015.
As previously disclosed in the Company's Current Report on Form
8-K filed December 2, 2015, following
the completion of the Exchange Offers, the Company may repurchase
its outstanding senior notes through privately negotiated
transactions or otherwise.
The Exchange Offers were only made, and the offering memorandum
and other documents relating to the Exchange Offers were only
distributed to, holders who completed and returned an eligibility
form confirming that they are (i) "qualified institutional buyers"
as defined in Rule 144A under the Securities Act of 1933, as
amended ("Securities Act"), or (ii) outside the United States and persons other than "U.S.
persons" as defined in Rule 902 under the Securities Act (such
persons, "Eligible Holders"). The Company made the Exchange Offers
only to Eligible Holders through, and pursuant to, the terms of the
confidential offering memorandum and related letter of transmittal,
as amended by the increased maximum exchange amount and the
extended Early Tender Date, each as described more fully in the
Company's current report on Form 8-K filed with the SEC on
December 16, 2015.
This press release is for informational purposes only. This
press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
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 or to U.S.
persons 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.
About Chesapeake Energy Corporation
Chesapeake Energy Corporation (NYSE:CHK) is the
second-largest producer of natural gas and the 12th 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 marketing
and compression businesses.
This news release includes "forward-looking statements" that
give Chesapeake's current expectations or forecasts of future
events, including the timing of the settlement and the size of the
Exchange Offers. Although we believe the expectations and
forecasts reflected in our forward-looking statements are
reasonable, Chesapeake 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 the satisfaction of conditions precedent to completing
the Exchange Offers, the ability to consummate any or all of the
Exchange Offers and those described under "Risk Factors" in Item 1A
of our annual report on Form 10-K and in our current report on Form
8-K filed on December 2, 2015
(available at http://www.chk.com/investors/sec-filings). 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, except
as required by applicable law.
|
|
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
Brad Sylvester, CFA
(405) 935-8870
ir@chk.com
|
Gordon Pennoyer
(405) 935-8878
media@chk.com
|
|
|
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visit:http://www.prnewswire.com/news-releases/chesapeake-energy-corporation-announces-final-tender-results-300198096.html
SOURCE Chesapeake Energy Corporation