Chesapeake Oilfield talks $500 million eight-year notes at 6¾% area

By Paul A. Harris

Portland, Ore., Oct. 24 - Chesapeake Oilfield Operating, LLC talked its $500 million offering of eight-year senior notes (Ba3/BB+) with a yield in the 6 ¾% area on Monday, according to an informed source.

The books closed on Monday for all investors who saw management through Friday. For all others the books close at 11 a.m. ET on Tuesday. The deal is set to price after that.

Bank of America Merrill Lynch, Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. are the joint bookrunners. Co-managers are expected to be announced.

The Rule 144A with registration rights notes come with four years of call protection and feature a 101% poison put.

Proceeds will be used to redeem intercompany debt due to Chesapeake Energy Corp.

Chesapeake Oilfield Operating is a wholly owned subsidiary of Chesapeake Energy, an Oklahoma City-based oil and gas company.

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