Posted : Tue, 10 Feb 2009 22:53:46 GMT
Author : Chesapeake Energy Corporation
Category : Press Release
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OKLAHOMA CITY - (Business Wire) Chesapeake Energy Corporation (NYSE:CHK) today announced that it is commencing a public offering of an additional $300 million of its existing 9.50% Senior Notes due 2015. Chesapeake intends to use the net proceeds from the offering to repay outstanding indebtedness under its revolving bank credit facility, which it anticipates reborrowing from time to time to fund drilling and leasehold acquisition initiatives and for general corporate purposes.

The senior notes are being offered pursuant to a shelf registration statement filed on January 27, 2009 with the U.S. Securities and Exchange Commission. Chesapeake intends to list the notes on the New York Stock Exchange after issuance.

The notes issued in this offering will be issued as additional securities under an indenture pursuant to which Chesapeake issued $1.0 billion of its 9.50% Senior Notes due 2015 on February 2, 2009. The notes issued in this offering and the existing notes will be treated as a single class of notes under the indenture.

Banc of America Securities LLC and Deutsche Bank Securities will act as joint book-running managers for the senior notes offering. Copies of the preliminary prospectus supplement relating to the offering may be obtained from the offices of Banc of America Securities LLC, Attn: Prospectus Department, 100 West 33rd Street, New York, NY 10001, (646) 733-4166. An electronic copy of the preliminary prospectus supplement will be available on the website of the Securities and Exchange Commission at www.sec.gov.