OKLAHOMA CITY, May 22, 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 senior
notes due 2027 (the "notes").
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.
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 May 22, 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. Chesapeake 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 timing of the settlement and amounts to be
purchased in the Tender Offers and the results 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 inaccurate or changed assumptions or by known or
unknown risks and uncertainties (including the satisfaction of
conditions precedent to completing the Tender Offers, including the
ability to consummate the proposed notes offering, the ability to
consummate any or all of the Tender Offers and 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), 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, 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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SOURCE Chesapeake Energy Corporation