Chesapeake Energy begins tender offer for $1.26 billion 9½% notes

By Susanna Moon

Chicago, April 10 - Chesapeake Energy Corp. said it began a tender offer for its $1,264,697,000 of outstanding 9½% senior notes due 2015.

The total purchase price will be $1,072 for each $1,000 principal amount of notes tendered by 5 p.m. ET on April 23, the early tender date.

The total payment includes an early tender premium of $30 per $1,000 of notes.

Those who tender after the early tender deadline will receive the total amount less the early premium.

The tender offer will end at 11:59 p.m. ET on May 7.

The company also will pay accrued interest up to but excluding the settlement date, which will be April 24 for early tendered notes and May 8 for remaining tenders.

The offer is conditioned on the company issuing at least $3 billion principal amount of debt by the early settlement date, according to a company press release. The company began an offering of $3 billion senior notes on April 10.

The tender offer is not contingent upon the tender of any minimum principal amount of notes.

Tendered notes may be withdrawn by the early tender date.

Morgan Stanley & Co. LLC (800 624-1808 toll free or 212 761-1057 collect) and Citigroup Global Markets Inc. (800 558-3745 toll free or 212 723-6106 collect) are the dealer managers. D.F. King & Co., Inc. (attn.: Krystal Scrudato, banks and brokers call collect 212 269-5550, others call 800 697-6975, or email chk@dfking.com) is the tender agent and information agent.

Chesapeake is an Oklahoma City-based developer of unconventional resources.

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