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Chesapeake Energy tenders for 7 5/8% notes, 6 7/8% notes in two offers
By Susanna Moon
Chicago, March 18 - Chesapeake Energy Corp. said it began separate tender offers for its $464.11 million of outstanding 7 5/8% senior notes due 2013 and its $473,668,000 of outstanding 6 7/8% senior notes due 2018.
For each $1,000 principal amount, the total purchase price will be $1,020 of 7 5/8% notes and $1,074.50 of 6 7/8% notes tendered by 5 p.m. ET on March 28, the early tender date.
The total payment includes an early tender premium of $30 per $1,000 of notes tendered by the early date.
Holders who tender their notes after the early deadline will receive the total payment less the early premium.
The tender offers will end at 11:59 p.m. ET on April 12.
The company also will pay accrued interest to but excluding the settlement date, which is expected to be April 1 for early tendered notes and April 15 for the remaining tenders.
The offers are conditioned on Chesapeake obtaining at least $1 billion of proceeds from one or more debt financing transactions by the early settlement date.
Chesapeake said it began a $2.3 billion offering of its senior notes on March 18, which would satisfy the financing condition.
The tender offers are not contingent upon the tender of any minimum principal amount of notes.
Tendered notes may be withdrawn by the early tender deadline.
Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-2147) and Morgan Stanley & Co. LLC (800 624-1808 or collect 212 761-1057) are the dealer managers. D.F. King & Co., Inc. (800 697-6975, attn: Elton Bagley, or banks and brokers call collect 212 269-5550, email chk@dfking.com) is the tender agent and information agent.
Chesapeake Energy is an oil and natural gas company based in Oklahoma City.
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