Chesapeake Energy to price $1 billion two-part notes offering in Tuesday drive-by

By Paul A. Harris

Portland, Ore., Feb. 2 – Chesapeake Energy Corp. plans to price $1 billion of senior notes in two tranches in a Tuesday drive-by trailing a mid-morning conference call with investors, according to a syndicate source.

The Rule 144A and Regulation S for life deal includes $500 million of five-year notes that become callable after two years at par plus 50% of the coupon and $500 million of eight-year notes that become callable after three years at par plus 50% of the coupon.

Left active bookrunner Goldman Sachs & Co. LLC will bill and deliver. RBC Capital Markets LLC is the joint active bookrunner. J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the joint bookrunners.

BofA Securities Inc., DNB, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and MUFG are the co-managers.

The Oklahoma City-based energy company plans to use the proceeds, plus anticipated proceeds from its exit revolver and rights offering, to fund distributions under its plan of reorganization, including the repayment of claims under its DIP facility. Proceeds will also be used to pay costs related to the company's emergence from bankruptcy and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.