Chesapeake Launches USD 2.3 Bln Senior Notes Offering

Chesapeake Energy Corporation announced that it is commencing a public offering of $2.3 billion in aggregate principal amount of its senior notes, which the company expects will be issued in three separate series, one maturing in 2016, another maturing in 2021 and the last maturing in 2023.

Chesapeake intends to use a portion of the net proceeds from the offering to purchase the portion of its 7.625% Senior Notes due 2013 and 6.875% Senior Notes due 2018 that are tendered in its concurrent tender offers for such notes. Chesapeake plans to use a substantial portion of the remaining net proceeds to redeem its 6.775% Senior Notes due 2019 at par value (subject to receipt of a favorable ruling in a declaratory judgment action currently pending with respect to Chesapeake’s ability to redeem such notes at par value). To the extent that any portion of the net proceeds of the offering is not used as described, Chesapeake plans to use such net proceeds to purchase, repay and/or redeem any of its 7.625% Senior Notes due 2013 not tendered in the concurrent tender offer and to purchase, repay and/or redeem over time other outstanding indebtedness, including indebtedness outstanding under its corporate revolving bank credit facility.

The senior notes are being offered pursuant to a shelf registration statement filed August 3, 2010, with the U.S. Securities and Exchange Commission.

Chesapeake intends to list the notes on the New York Stock Exchange after issuance.

Morgan Stanley & Co., Credit Suisse Securities LLC, Citigroup Global Markets Inc., Goldman, Sachs & Co. and Wells Fargo Securities, LLC will act as joint book-running managers for the notes offering.

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LNG World News Staff, March 18, 2013