Chesapeake Energy Corporation Completes Tender Offer for Bronco Drilling Company, Inc.
June 06 2011 - 6:01AM
Business Wire
Chesapeake Energy Corporation (NYSE:CHK) today announced that it
has successfully completed its tender offer for Bronco Drilling
Company, Inc. (NASDAQ: BRNC), which expired at 5:00 p.m., New York
City time, on Friday, June 3, 2011.
Based on preliminary information from Computershare Trust
Company, N.A., the depositary for the offer, as of the expiration
of the tender offer, approximately 24,959,224 shares (which
includes 691,967 shares that were tendered pursuant to guaranteed
delivery procedures) were validly tendered and not withdrawn in the
tender offer, representing approximately 86.7% of Bronco’s issued
and outstanding shares. All validly tendered shares have been
accepted for payment, which will be made in accordance with the
terms of the tender offer.
After exercise of a top-up option granted by Bronco, Chesapeake
intends to complete its acquisition of the remaining shares of
Bronco through a short-form merger as soon as practical. In the
short-form merger, any remaining Bronco shares (other than those
held by Chesapeake, Bronco or any wholly-owned subsidiary of
Chesapeake or Bronco, and any shareholders who validly exercise
their appraisal rights in connection with the merger) will be
exchanged for $11.00 per share in cash, subject to applicable
withholding taxes.
Johnson Rice & Company L.L.C. acted as financial advisor to
Bronco. Thompson & Knight LLP and Richards, Layton and Finger
P.A. acted as legal advisors to Bronco. Jefferies & Company,
Inc. acted as financial advisor to Chesapeake. Commercial Law
Group, P.C. and Wachtell, Lipton, Rosen & Katz acted as legal
advisors to Chesapeake.
About Chesapeake:
Chesapeake Energy Corporation is the second-largest producer
of natural gas, a Top 15 producer of oil and natural gas liquids
and the most active driller of new wells in the U.S.
Headquartered in Oklahoma City, the company's operations are
focused on discovering and developing unconventional natural gas
and oil fields onshore in the U.S. Chesapeake owns leading
positions in the Barnett, Haynesville, Bossier, Marcellus and
Pearsall natural gas shale plays and in the Granite Wash,
Cleveland, Tonkawa, Mississippian, Bone Spring, Avalon, Wolfcamp,
Wolfberry, Eagle Ford, Niobrara, Three Forks/Bakken and Utica
unconventional liquids plays. The company has also
vertically integrated its operations and owns substantial
midstream, compression, drilling and oilfield service assets.
Chesapeake’s stock is listed on the New York Stock Exchange
under the symbol CHK. Further information is available
at www.chk.com where Chesapeake routinely posts
announcements, updates, events, investor information, presentations
and press releases.
Forward Looking
Statements:
This news release contains forward-looking statements,
including the anticipation of Chesapeake completing its acquisition
of the remaining shares of Bronco through a short-form merger.
Forward-looking statements give our current expectations or
forecasts of future events. Although we believe our forward-looking
statements are reasonable, they can be affected by inaccurate
assumptions or by known or unknown risks and uncertainties, and
actual results may differ from the expectations expressed. For a
discussion of risk factors that affect business of both Chesapeake
and Bronco, see the “Risk Factors” discussion in Chesapeake’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2010 filed with the U.S. Securities and Exchange Commission on
March 1, 2011, and Bronco’s Annual Report on From 10-K for the
fiscal year ended December 31, 2010 filed with the U.S. Securities
and Exchange Commission on March 15, 2011, as amended. 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.
Many of the factors that will determine the outcome of the
subject matter of this communication are beyond both Chesapeake’s
and Bronco’s ability to control or predict. Except to the extent
required by applicable law, neither Chesapeake nor Bronco
undertakes any obligation to revise or update any forward-looking
statements, or to make any other forward-looking statements,
whether as a result of new information, future results or
otherwise.
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