CHESAPEAKE ENERGY CORPORATION (NYSE:CHK) Files An 8-K Other Events
Item 8.01. Other Events.
Private Placement
On December 6, 2016, Chesapeake Energy Corporation (the Company)
issued a press release regarding the commencement of a private
placement to eligible purchasers of $750 million aggregate
principal amount of senior notes due 2025. A copy of the press
release is filed as Exhibit 99.1 and incorporated by reference in
this current report.
This current report does not constitute an offer to sell, or a
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.
Asset Sale
On November 30, 2016, the Company entered into an agreement to
sell to a private company a portion of its acreage and producing
properties in its Haynesville Shale operating area in northern
Louisiana for approximately $450 million, subject to adjustment.
Included in the sale are approximately 72,800 net acres, 40,000
net acres of which the Company considered as core acreage, and
approximately 250 producing wells currently producing
approximately 30 million cubic feet of gas per day, net to the
Company. The closing is subject to customary closing conditions.
The Company expects this transaction to close in the first
quarter of 2017. The Company can give no assurance that the
transaction will close by that time or at all.
Tender Offers
On December 6, 2016, the Company issued a press release
announcing that the Company has commenced cash tender offers to
purchase its outstanding 2.5% Contingent Convertible Senior Notes
due 2037 and 2.25% Contingent Convertible Senior Notes due 2038,
upon the terms and conditions set forth in an Offer to Purchase,
dated December 6, 2016, and the related Letter of Transmittal. A
copy of the press release is attached hereto as Exhibit 99.2 to
this Current Report on Form 8-K and is incorporated herein by
reference.
On December 6, 2016, the Company also issued a press release
announcing that the Company has commenced cash tender offers to
purchase up to $1,200,000,000 aggregate purchase price, exclusive
of accrued interest, of its outstanding 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 and 5.75% Senior Notes due 2023 upon the terms and
conditions set forth in an Offer to Purchase, dated December 6,
2016, and the related Letter of Transmittal. A copy of the press
release is attached hereto as Exhibit 99.3 to this Current Report
on Form 8-K and is incorporated herein by reference.
This current report is neither an offer to purchase nor a
solicitation of an offer to sell any notes in the tender offers.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. |
|
ExhibitNo. |
Document Description |
|
| 99.1 |
Chesapeake Energy Corporation press release dated December 6, 2016 |
|
| 99.2 |
Chesapeake Energy Corporation press release dated December 6, 2016 |
|
| 99.3 |
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 up +0.25 at 7.48 with 59,778,541 shares trading hands.