Chesapeake Energy Prices, Upsizes Term Loan Facility To $1.5 Billion

(RTTNews) - Chesapeake Energy Corp. (CHK) Tuesday announced the pricing and upsizing of its term loan to $1.5 billion from a previously announced size of $1 billion. Joint lead arrangers for the term loan are Goldman Sachs Bank USA, Citigroup Global Markets Inc. and MUFG.

Chesapeake intends to use the net proceeds of the loan to finance tender offers for its unsecured notes, with any remaining proceeds used for further debt repayments and other general corporate purposes. The financing and the tender offers are expected to improve its financial flexibility by reducing its near-term maturing debt.

The loan will have a five-year term and bear interest at a rate of LIBOR plus 7.50 percent per annum, subject to a 1.00 percent LIBOR floor.

The loan is expected to close on or before August 23.