By Paul A. Harris
St. Louis, Aug. 12 - Chesapeake Energy Corp. priced a $100 million add-on to its 6½% senior notes due Aug. 15, 2017 (Ba3/BB-/BB) at 99.50 on Friday to yield 6.561%, according to a syndicate source.
Banc of America Securities LLC, Bear Stearns & Co., Lehman Brothers and UBS Investment Bank were joint bookrunners for the Rule 144A with registration rights add-on.
Proceeds will be used to repay bank debt.
The notes priced one day after the Oklahoma City-based independent natural gas producer priced the original $500 million issue at 98.977 to yield 6 5/8%.
| Issuer: | Chesapeake Energy Corp.
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| Amount: | $100 million
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| Maturity: | Aug. 15, 2017
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| Security description: | Add-on to 6½% senior notes
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| Bookrunners: | Banc of America Securities LLC, Bear Stearns & Co., Lehman Brothers, UBS Investment Bank
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| Coupon: | 6½%
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| Price: | 99.50
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| Yield: | 6.561%
|
| Spread: | 277 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
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| Trade date: | Aug. 12
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| Settlement date: | Aug. 16 flat
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Fitch: BB
|
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