By Paul A. Harris
St. Louis, Jan. 31 - Chesapeake Energy Corp. priced a $500 million add-on to its 6½% senior notes due Aug. 15, 2017 (Ba2/BB) at 99.00 on Tuesday, resulting in a yield of 6 5/8%, according to an informed source.
The dollar price came on top of the 99.00 area price talk.
Banc of America Securities LLC, Citigroup, Lehman Brothers, UBS Investment Bank and Wachovia Securities were joint bookrunners for the issue which was sold via Rule 144A with registration rights and via Regulation S.
ABN Amro, BNP Paribas, Calyon Securities, Fortis Investments, SunTrust Robinson Humphrey, The Royal Bank of Scotland and Wells Fargo Securities were the senior co-managers. DZ Bank, BOSC Inc., Comerica, Harris Nesbitt, HVB, Piper Jaffray, TD Securities and WestLB were the co-managers.
Proceeds will be used to repay bank debt.
The original $500 million issue priced at 98.977 on Aug. 11, 2005 to yield 6 5/8%. On the following day the company priced a $100 million add-on at 99.50 to yield 6.561%. The total issue size following the latest add-on is $1.1 billion.
Chesapeake Energy is an independent producer of natural gas and has headquarters in Oklahoma City.
| Issuer: | Chesapeake Energy Corp.
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| Amount: | $500 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, Citigroup, Lehman Brothers, UBS Investment Bank, Wachovia Securities
|
| Coupon: | 6½%
|
| Price: | 99.00
|
| Yield: | 6 5/8%
|
| Spread: | 210 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
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| Trade date: | Jan. 31
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| Settlement date: | Feb. 3 with accrued interest
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| Ratings: | Moody's Ba2
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| Standard & Poor's: BB
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| Distribution: | Rule 144A with registration rights/Regulation S
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| Price talk: | 99.00 area
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| Original issue: | $500 million priced at 98.977 on Aug. 11, 2005 to yield 6 5/8%; $100 million add-on priced at 99.50 on Aug. 12, 2005 to yield 6.561%.
|
| Total issue size: | $1.1 billion
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