OKLAHOMA CITY, April 2, 2019 /PRNewswire/ -- Chesapeake
Energy Corporation (NYSE:CHK) today announced the final results of
its private offers to exchange (the "Exchange Offers") new 8.00%
Senior Notes due 2026 (the "New Notes") for certain outstanding
senior unsecured notes listed in the table below (the "Existing
Notes"). As of 11:59 p.m.,
New York City time, on
April 1, 2019 (the "Expiration
Date"), approximately $883.5 million
aggregate principal amount, or approximately 59.7%, of Existing
Notes had been validly tendered and not validly withdrawn.
The following table sets forth the approximate aggregate
principal amounts of each series of Existing Notes that were
validly tendered and not validly withdrawn on or prior to the
Expiration Date.
Title of
Series
|
Aggregate Principal
Amount
Outstanding (in
millions)
|
Approximate Aggregate
Principal
Amount of Existing Notes Tendered (in millions)
|
6.625% senior notes
due 2020
|
$437.0
|
$228.4
|
6.875% senior notes
due 2020
|
$227.7
|
$134.1
|
6.125% senior notes
due 2021
|
$547.5
|
$381.2
|
5.375% senior notes
due 2021
|
$266.7
|
$139.8
|
The settlement date for the Exchange Offers is expected to occur
on April 3, 2019 (the "Settlement
Date"), subject to all conditions to the Exchange Offers having
been satisfied or waived by the Company. On the Settlement Date,
the Company will issue approximately $918.5
million aggregate principal amount of New Notes in exchange
for the Existing Notes that were validly tendered prior to the
Expiration Date.
In addition to the applicable exchange consideration set forth
in the confidential offering memorandum, the Company will also
make a cash payment equal to the accrued and unpaid interest on
such Existing Notes accepted for exchange from the applicable
latest interest payment date to, but not including, the Settlement
Date. Interest on the New Notes will accrue from the date of first
issuance of the New Notes.
The Exchange Offers are conditioned on the satisfaction or
waiver of certain customary conditions, as described in the
confidential offering memorandum. The Exchange Offers were only
made, and the confidential offering memorandum and other documents
relating to the Exchange Offers were only distributed to, holders
who completed and returned an eligibility letter confirming that
they are (i) "qualified institutional buyers" as defined in Rule
144A under the Securities Act of 1933, as amended ("Securities
Act"), or (ii) outside the United
States and persons other than "U.S. persons" as defined in
Rule 902 under the Securities Act, who are "non-U.S. qualified
offerees" (as defined in the eligibility letter) (such persons,
"Eligible Holders"). The Company made the Exchange Offers only to
Eligible Holders through, and pursuant to, the terms of the
confidential offering memorandum and related letter of
transmittal.
The securities offered in the Exchange Offers have not been
registered under the Securities Act or any state securities laws;
and unless so registered, the securities may not be offered or sold
in the United States or to U.S.
persons except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act
and applicable state securities laws. This press release shall not
constitute an offer to sell or a solicitation of an offer to buy,
nor shall there be any sale of these securities, in any
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
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.
This news release includes "forward-looking statements" that
give the Company's current expectations or forecasts of future
events, including the timing of the settlement and the size of the
Exchange Offers. Although we believe the expectations and forecasts
reflected in our 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 (including the satisfaction of
conditions precedent to completing the Exchange Offers, the ability
to consummate any or all of the Exchange Offers and those stated in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2018 and its other
filings with the SEC), and actual results may differ from the
expectation expressed. 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, except as required by applicable law.
CHK INVESTOR
CONTACT:
Brad Sylvester,
CFA
405-935-8870
ir@chk.com
|
CHK MEDIA
CONTACT:
Gordon
Pennoyer
405-935-8878
media@chk.com
|
CHESAPEAKE ENERGY
CORPORATION
6100 North Western
Avenue
P.O. Box
18496
Oklahoma City, OK
73154
|
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SOURCE Chesapeake Energy Corporation