Chesapeake Energy said that it has priced its public offering of $3.0 billion in aggregate principal amount of its senior notes at par.
The notes will be issued in two separate series of notes: $1,500,000,000 in Floating Rate Senior Notes due 2019 that will bear interest at LIBOR plus 3.25%, reset quarterly, and $1,500,000,000 in 4.875% Senior Notes due 2022.
Chesapeake intends to use the net proceeds from the offering to repay its existing unsecured term loan, redeem its 6.875% Senior Notes due 2018 and purchase the portion of its 9.50% Senior Notes due 2015 that are tendered in its concurrent tender offer for such notes.
Press Release, April 11, 2014; Image: Chesapeake