CHESAPEAKE ENERGY CORPORATION (NYSE:CHK) Files An 8-K Other Events
Item 8.01 Other Events.
and certain subsidiary guarantors named therein (collectively,
the Guarantors) entered into a purchase agreement (the Purchase
Agreement) with Deutsche Bank Securities Inc., as representative
of the several initial purchasers named therein (collectively,
the Purchasers), under which the Company agreed to sell $1.0
billion aggregate principal amount of 8.00% Senior Notes due 2025
(the Notes) in a private placement (the Private Placement)
conducted to Rule 144A and Regulation S under the Securities Act
of 1933, as amended (the Securities Act). At closing, the Notes
are to be issued at an issue price of 98.522 percent of par for
net proceeds of approximately $973.5 million, after deducting the
initial purchasers discount and estimated expenses of the
offering. The closing of the issuance of the Notes is expected to
occur on December 20, 2016.
Placement, together with cash on hand and borrowings under its
credit facility (if required), to fund the purchase price of its
tender offers that commenced on December 6, 2016 for the Companys
6.5% Senior Notes due 2017, 7.25% Senior Notes due 2018, Floating
Rate Senior Notes due 2019, 6.625% Senior Notes due 2020, 6.875%
Senior Notes due 2020, 6.125% Senior Notes due 2021, 5.375%
Senior Notes due 2021, 4.875% Senior Notes due 2022, 8.00% Senior
Secured Second Lien Notes due 2022, 5.75% Senior Notes due 2023,
2.5% Contingent Convertible Senior Notes due 2037 and 2.25%
Contingent Convertible Senior Notes due 2038 (the Tender Offers).
If the Tender Offers are not consummated or the net proceeds from
the offering exceed the total consideration payable in the Tender
Offers, the Company intends to use the remaining net proceeds for
general corporate purposes, which may include debt repurchases
and the repayment of the Companys senior notes with near term
maturities as they become due.
Companys senior notes and the Company repurchases or repays such
senior notes using the net proceeds from the Private Placement,
they will receive a portion of such net proceeds.
warranties and agreements of the Company and the Guarantors and
customary indemnification rights.
in its entirety by reference to the full text of the Purchase
Agreement, a copy of which is filed as Exhibit 10.1 to this
report.
the Private Placement. A copy of the press release is filed as
Exhibit 99.1 and incorporated by reference in this current
report.
solicitation of an offer to buy, nor shall there be any sale of
the securities in any state or jurisdiction in which such offer,
solicitation or sale is unlawful. Any offers of the securities
will be made only by means of a confidential offering circular to
Rule 144A and Regulation S under the Securities Act.
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(d)
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Exhibits.
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Exhibit No.
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Document Description
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10.1
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Purchase Agreement, dated December 6, 2016, by and
among Chesapeake Energy Corporation, the subsidiary guarantors named therein and Deutsche Bank Securities Inc., as representative of the initial purchasers named therein, relating to the private placement of the 8.00% Senior Notes due 2025 |
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99.1
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Chesapeake Energy Corporation press release dated
December 6, 2016 |
About CHESAPEAKE ENERGY CORPORATION (NYSE:CHK)
Chesapeake Energy Corporation (Chesapeake) is a producer of natural gas, oil and natural gas liquids (NGL) in the United States. The Company operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. The exploration and production segment is responsible for finding and producing oil, natural gas and NGL. The marketing, gathering and compression segment is responsible for marketing, gathering and compression of oil, natural gas and NGL. It has positions in resource plays of the Eagle Ford Shale in South Texas; the Utica Shale in Ohio and Pennsylvania; the Anadarko Basin in northwestern Oklahoma and the Texas Panhandle, and the Niobrara Shale in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin in Pennsylvania, and the Barnett Shale in the Fort Worth Basin of north-central Texas. CHESAPEAKE ENERGY CORPORATION (NYSE:CHK) Recent Trading Information
CHESAPEAKE ENERGY CORPORATION (NYSE:CHK) closed its last trading session down -0.23 at 7.13 with 66,389,814 shares trading hands.