Summary
Chesapeake Energy Corporation (NYSE: CHK) announced on December 13, 2002, the pricing of a public offering for 20,000,000 shares of its common stock at $7.50 per share. The company expects the transaction to close on December 18, 2002. A 30-day option has been granted to underwriters for the purchase of up to an additional 3,000,000 shares to cover potential over-allotments. The primary purpose of this offering is to secure a portion of the funding required for Chesapeake's recently announced acquisition of Mid-Continent natural gas properties from ONEOK, Inc., which is anticipated to close in January 2003. Should the ONEOK acquisition not materialize, the net proceeds will be allocated towards general corporate purposes, including potential future acquisitions. This offering represents a significant capital-raising initiative for Chesapeake as it pursues strategic growth opportunities.
Key Highlights
- 1Chesapeake Energy priced a public offering of 20,000,000 shares of common stock at $7.50 per share.
- 2The offering is expected to close on December 18, 2002.
- 3Underwriters have a 30-day option to purchase up to an additional 3,000,000 shares for over-allotment coverage.
- 4Proceeds are intended to partially fund the acquisition of Mid-Continent natural gas properties from ONEOK, Inc., scheduled for January 2003.
- 5If the ONEOK acquisition does not close, proceeds will be used for general corporate purposes, including future acquisitions.
- 6Credit Suisse First Boston, Morgan Stanley, and Salomon Smith Barney are acting as joint book-running managers.