Chesapeake Energy Commences Private Placement Of $750 Mln Of Senior Notes

(RTTNews) - Chesapeake Energy Corp. (CHK) said it has commenced a private placement to eligible purchasers of $750 million aggregate principal amount of senior notes due 2027.

The company intends to use the net proceeds from the offering, together with cash on hand and borrowings under its revolving credit facility, 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. This may include the repayment of outstanding indebtedness under its credit facility and the repayment or repurchase of other indebtedness.

In a separate statement, Chesapeake Energy said it has commenced cash tender offers to purchase up to $750 million aggregate purchase price, exclusive of accrued interest of the outstanding notes of Chesapeake.

The company noted that in the tender offers, it will purchase no more than $200 million aggregate purchase price, exclusive of accrued interest, of 6.625 percent Senior Notes due 2020 and 6.875 percent Senior Notes due 2020, and no more than $200 million less the aggregate purchase price of the Priority 2 Notes validly tendered and accepted for purchase of 6.125 percent Senior Notes due 2021 and 5.375 percent Senior Notes due 2021.

The tender offers will expire at midnight on June 19, 2017.