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Chesapeake Energy records early tenders for 7 5/8% notes, 6 7/8% notes
By Susanna Moon
Chicago, April 1 - Chesapeake Energy Corp. said investors tendered $216,187,000 of its $464.11 million of outstanding 7 5/8% senior notes due 2013 and $376,595,000 of its $473,668,000 of outstanding 6 7/8% senior notes due 2018 by the early tender deadline at 5 p.m. ET on March 28.
The tender offers were conditioned on Chesapeake obtaining at least $1 billion of proceeds from debt financing by the early settlement date, and that condition has been satisfied, according to a company press release.
Chesapeake closed $2.3 billion of senior notes and accepted for purchase all notes tendered by the early tender deadline, the press release noted.
Holders may continue to tender notes until 11:59 p.m. ET on April 12. The company began separate tender offers for the notes on March 18.
As noted before, the total purchase price will be $1,020 for 7 5/8% notes and $1,074.50 for 6 7/8% notes tendered by the early tender date. The total payment includes an early tender premium of $30.00 per $1,000 principal amount 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 company also will pay accrued interest to but excluding the settlement date, which was expected to be April 1 for early tendered notes and April 15 for the remaining tenders.
The tender offers are not contingent upon the tender of any minimum principal amount of notes.
Tendered notes may no longer be withdrawn, as of the early tender deadline.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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