Chesapeake Energy begins tender offers for up to $1 billion of notes

By Angela McDaniels

Tacoma, Wash., April 4 - Chesapeake Energy Corp. will repurchase up to $1 billion of its notes through seven tender offers, according to a company news release.

The company is offering to buy:

• Up to $100 million of its $500 million 7 5/8% senior notes due 2013 at a price of $1,102.50 per $1,000 principal amount;

• Up to $100 million of its $1,425,000,000 9½% senior notes due 2015 at a price of $1,210.00;

• Up to €150 million of its €600 million 6¼% senior notes due 2017 at a price of €1,062.50;

• Up to $150 million of its $1.1 billion 6½% senior notes due 2017 at a price of $1,110.00;

• Up to $150 million of its $600 million 6 7/8% senior notes due 2018 at a price of $1,110.00;

• Up to $200 million of its $800 million 7¼% senior notes due 2018 at a price of $1,140.00; and

• Up to $100 million of its $1.4 billion 6 5/8% senior notes due 2020 at a price of $1,090.00.

Each of the prices noted above includes an early tender premium of $20 or €20 for each note tendered by the early tender deadline, which is 5 p.m. ET on April 15.

Holders will also receive accrued interest up to but excluding the settlement date.

The offers will expire at 11:59 p.m. ET on April 29.

If a tender offer is oversubscribed, the company will accept notes tendered in that offer on a pro rata basis.

Chesapeake also announced separate tender offers to acquire up to $1 billion of its contingent convertible senior notes. These offers will also expire at 11:59 p.m. ET on April 29.

None of the tender offers are conditioned on the results of the other offers.

The dealer managers are Deutsche Bank Securities Inc. (855 287-1922, 212 250-7527 or 44 0 20 7545 8011), Citigroup Global Markets Inc. (800 558-3745, 212 723-6106 or 44 0 20 7986 8969) and RBS Securities Inc. (877 297-9832, 203 897-6145 or 44 0 20 7085 4634).

Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 470-4200) is the information agent for the dollar-denominated notes, and Lucid Issuer Services Ltd. (+44 0 20 7704 0880 or chesapeake@lucid-is.com) is the information agent for the euro-denominated notes.

Chesapeake produces natural gas and is based in Oklahoma City.

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