Summary
Chesapeake Energy Corporation (CHK) announced on December 16, 2002, the pricing of a private offering of $150 million in senior notes due January 15, 2015. These notes carry a coupon rate of 7.75% and were priced at 99.026% of par, yielding 7.875%. The offering is expected to close on December 20, 2002, subject to customary closing conditions. The primary intended use of the net proceeds from this offering is to partially finance the recently announced acquisition of natural gas properties from ONEOK, Inc., which is slated for completion in January 2003. Should the ONEOK acquisition not materialize, the proceeds will be allocated towards general corporate purposes, which may include future acquisitions. This financing event signals Chesapeake's strategic move to fund significant growth initiatives.
Key Highlights
- 1Chesapeake Energy priced a $150 million senior notes offering due 2015.
- 2The notes carry a 7.75% interest rate and were issued at a slight discount (99.026% of par).
- 3The offering is a private placement, not registered under the Securities Act of 1933, and eligible for trading under Rule 144A.
- 4Proceeds are earmarked to help fund the acquisition of natural gas properties from ONEOK, Inc.
- 5The ONEOK acquisition is expected to close in January 2003.
- 6If the acquisition is not completed, proceeds will be used for general corporate purposes and potential future acquisitions.
- 7The closing of the notes offering is scheduled for December 20, 2002.