OKLAHOMA CITY, Sept. 12, 2018 /PRNewswire/ -- Chesapeake
Energy Corporation (NYSE:CHK) today announced it has amended and
restated its senior secured revolving credit facility agreement.
The amended and restated facility received initial commitments from
15 institutions totaling $3.8
billion, which exceeded the $3.0
billion borrowing base the company was seeking. The initial
borrowing base does not include any properties being sold in the
company's $2.0 billion Utica Shale
transaction expected to close in the fourth quarter of 2018, thus
the borrowing base will not be affected when the transaction
closes. The credit facility will mature in September
2023.
Nick Dell'Osso, Chesapeake's
Executive Vice President and Chief Financial Officer, commented,
"We are very pleased with the five-year renewal of our credit
facility which demonstrates the confidence of our bank group in
Chesapeake's future. We were able to reduce our borrowing base to $3.0 billion based on our significantly improved
cash flow profile, operating and capital efficiency and the
strength of our portfolio after our planned Utica Shale
divestiture. The decreased size of the facility will result in
reduced costs while maintaining an ample liquidity backstop with
significant cushion to execute an optimal business plan through
commodity cycles. Along with our greatly simplified balance sheet,
pending significant reduction in outstanding debt and improving
operating and financial results, the renewal of our credit facility
places Chesapeake in a position of significant strength."
The credit facility is led by MUFG Union Bank, N.A., as
administrative agent, co-syndication agent, swingline lender and a
letter of credit issuer, and Wells Fargo Bank, National Association
and JPMorgan Chase Bank, N.A., as co-syndication agents, swingline
lenders, and letter of credit issuers. MUFG Union Bank, N.A., Wells
Fargo Securities, LLC, JPMorgan Chase Bank, N.A., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, BMO Capital Markets Corp.,
Citicorp North America, Inc., Crédit Agricole Corporate and
Investment Bank, Mizuho Bank, Ltd.,
and Royal Bank of Canada served as
joint lead arrangers and joint bookrunners for the transaction.
Chesapeake intends to use this credit facility for working capital
and general corporate purposes.
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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 news release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are statements other than statements of historical fact.
They include statements that give our current expectations,
including statements regarding the Utica Shale disposition and its
effect on our borrowing base and statements regarding the intended
use of proceeds of the credit facility, and the assumptions on
which such statements are based. Although we believe the
expectations reflected in the 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. Factors that
could cause actual results to differ materially from expected
results include the need to obtain consents and approvals and to
satisfy closing conditions in connection with the Utica Shale
disposition, the termination of the agreement and those described
under "Risk Factors" in Item 1A of our annual report on Form 10-K
and any updates to those factors set forth
in Chesapeake's subsequent quarterly reports on Form 10-Q
or current reports on Form 8-K (available at
http://www.chk.com/investors/sec-filings).
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 an oil and natural gas
marketing business.
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SOURCE Chesapeake Energy Corporation