Chesapeake Energy said that it has priced its previously announced public offering of $1.3 billion principal amount of Senior Notes due 2019, which will carry an interest rate of 6.775% per annum.
The senior notes were priced at 98.75% of par to yield 7%. The offering was increased from a previously announced offering size of $1.0 billion, resulting in net proceeds to Chesapeake of $1.26 billion after deducting underwriting discounts and commissions.
Chesapeake said it expects the issuance and delivery of the senior notes to occur on February 16.
Chesapeake intends to use the net proceeds from the offering for general corporate purposes. Pending such use, Chesapeake plans to use the net proceeds from the offering to repay amounts outstanding under its revolving bank credit facility, which it anticipates reborrowing from time to time to meet capital expenditure initiatives.
[mappress] LNG World News Staff, February 14, 2012