OKLAHOMA CITY, Sept. 27, 2017 /PRNewswire/ -- Chesapeake Energy
Corporation (NYSE:CHK) today announced that it has commenced a
private placement to eligible purchasers of $750,000,000 aggregate principal amount of
additional 8.00% senior notes due 2025 (the "new 2025 notes") and
8.00% senior notes due 2027 (the "new 2027 notes," collectively
with the new 2025 notes, the "notes"). The new 2025 notes will be
an additional issuance of Chesapeake's outstanding 8.00% senior
notes due 2025, which Chesapeake issued in December 2016 in an original aggregate principal
amount of $1,000,000,000. The new
2025 notes to be issued in this offering and the previously issued
senior notes due 2025 will be treated as a single class of notes
under the indenture. The new 2027 notes will be an additional
issuance of Chesapeake's outstanding 8.00% senior notes due 2027,
which Chesapeake issued in June 2017
in an original aggregate principal amount of $750,000,000. The new 2027 notes to be issued in
this offering and the previously issued senior notes due 2027 will
be treated as a single class of notes under the indenture.
Chesapeake intends to use the net proceeds from the offering,
together with cash on hand and borrowings under its revolving
credit facility (if required), to finance tender offers for certain
of its senior notes announced today. If the tender offers are not
consummated or the net proceeds from the offering exceed the total
consideration payable in the tender offers, Chesapeake intends to
use the remaining net proceeds from the offering for general
corporate purposes, which may include the repayment of outstanding
indebtedness under its credit facility and the repayment or
repurchase of other indebtedness.
The notes will be offered and sold to persons reasonably
believed to be qualified institutional buyers in the United States pursuant to Rule 144A under
the Securities Act of 1933, as amended (the "Securities Act"), and
outside the United States to
non-U.S. persons pursuant to Regulation S under the Securities Act.
The offer and sale of the notes and the related subsidiary
guarantees have not been registered under the Securities Act or any
state securities laws and may not be offered or sold in
the United States absent
registration or an applicable exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act
and applicable state laws.
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INVESTOR
CONTACT:
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MEDIA
CONTACT:
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CHESAPEAKE ENERGY
CORPORATION
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Brad Sylvester,
CFA
(405)
935-8870
ir@chk.com
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Gordon
Pennoyer
(405)
935-8878
media@chk.com
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6100 North Western
Avenue
P.O. Box
18496
Oklahoma City, OK
73154
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This press release does 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 state or jurisdiction in which such offer,
solicitation or sale is unlawful. Any offers of the securities will
be made in the United States only
by means of a private offering circular pursuant to Rule 144A under
the Securities Act, and outside the
United States to non-U.S. persons pursuant to Regulation S
under the Securities Act. This press release does not constitute an
offer to purchase or a solicitation of an offer to sell
Chesapeake's outstanding senior notes subject to the concurrent
tender offers. The concurrent tender offers are being made only by
and pursuant to, and on the terms and conditions set forth in, the
Offer to Purchase dated September 27,
2017 and the related letter of transmittal.
Headquartered in Oklahoma
City, Chesapeake Energy Corporation's (NYSE: CHK) operations
are focused on discovering and developing its large and
geographically diverse resource base of unconventional oil and
natural gas assets onshore in the United States. The company
also owns oil and natural gas marketing and natural gas compression
businesses.
This news release includes "forward-looking statements" that
give Chesapeake's current expectations or forecasts of future
events, including the use of proceeds of the proposed notes
offering. 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 market conditions, results of tender offers or 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,
2016 and its other filings with the SEC), that could cause
actual results to differ materially 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, except
as required by applicable law.
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SOURCE Chesapeake Energy Corporation