Chesapeake Energy selling $2.3 billion three-part note offering Monday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, March 18 - Chesapeake Energy Corp. is set to sell $2.3 billion senior notes (expected ratings Ba3/BB-) in three parts on Monday, according to a market source and a 424B5 filing with the Securities and Exchange Commission.

An investor call took place at 10:30 a.m. ET.

The deal will include a tranche due March 2016, which will be non-callable for one year, and a tranche due June 2021, which will be non-callable for three years.

There will also be a tranche due March 2023, and the notes will be non-callable.

Active bookrunner Morgan Stanley & Co. LLC will bill and deliver.

Credit Suisse Securities (USA) LLC also is an active bookrunner, while Citigroup Global Markets Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC are passive bookrunners.

Co-managers for the SEC-registered deal are to be announced.

Proceeds will be used to purchase the portion of the company's 2013 notes and the 2018 notes that are tendered in the concurrent tender offers and to redeem the 2019 notes at par.

To the extent that any portion of the proceeds is not used as described above, proceeds will then be used to purchase, repay and/or redeem any 2013 notes not tendered, and to purchase, repay and/or redeem over time other outstanding debt, including the corporate revolver.

Chesapeake Energy is an Oklahoma City-based oil and natural gas exploration and production company.

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