USA: Chesapeake Announces Pricing of Offering of $1.0 Billion of Senior Notes

Chesapeake Energy Corporation announced that it has priced its previously announced public offering of $1.0 billion principal amount of Senior Notes due 2021.

The notes were priced at par and carry an interest rate of 6.125% per annum. Chesapeake expects the issuance and delivery of the senior notes to occur on February 11, 2011, subject to customary closing conditions.

Chesapeake intends to use the net proceeds from the offering to repay indebtedness outstanding under its revolving bank credit facility, which it anticipates reborrowing from time to time to meet capital expenditure initiatives and for general corporate purposes.

This offering is a part of Chesapeake’s 2011 liability management program, which contemplates extending the maturity profile of its outstanding indebtedness and also retiring approximately $2.0 to $3.0 billion of its shorter-dated senior notes using the proceeds from its recently announced planned asset sales.

Chesapeake Energy Corporation is the second-largest producer of natural gas 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, Fayetteville, Haynesville, Marcellus and Bossier natural gas shale plays and in the Eagle Ford, Granite Wash, Tonkawa, Cleveland, Mississippian, Wolfcamp, Bone Spring, Avalon and Niobrara unconventional liquids plays.The company has also vertically integrated its operations and owns substantial midstream, compression, drilling and oilfield service assets.

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Source: Chesapeake Energy, February 9, 2011;