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Chesapeake Energy buys back $946.57 million 9½% notes in tender offer
By Angela McDaniels
Tacoma, Wash., May 8 - Chesapeake Energy Corp. received tenders for $946,566,000 principal amount, or 75%, of its $1,264,697,000 of 9½% senior notes due 2015 and has accepted all of the notes for purchase, according to a company news release.
A tender offer for the notes began April 10 and ended at 11:59 p.m. ET on May 7.
Holders tendered $945,908,000 of notes by the early tender date, 5 p.m. ET on April 23. The remaining $658,000 of notes were tendered after that deadline but prior to the expiration date.
The company paid $1,072 for each $1,000 principal amount of notes tendered by the early tender date, which includes a $30 early tender premium. Holders who tendered after the early tender deadline received $1,042 for each $1,000 principal amount of notes.
The company also paid accrued interest up to but excluding the applicable settlement date, which was April 24 for early tendered notes and May 8 for the remaining tendered notes.
The offer was conditioned on the company issuing at least $3 billion principal amount of debt by the early settlement date, which has been satisfied. The company concluded a $3 billion issue of senior notes on April 24.
The tender offer was not contingent on the tender of any minimum principal amount of notes.
Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) were the dealer managers. D.F. King & Co., Inc. (attn.: Krystal Scrudato, banks and brokers call 212 269-5550, others call 800 697-6975, or email chk@dfking.com) was the tender agent and information agent.
Chesapeake is an Oklahoma City-based developer of unconventional resources.
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