Summary
Chesapeake Energy Corporation (Chesapeake) announced on February 28, 2003, the pricing of a public offering of 20 million shares of its common stock at $8.10 per share. The offering is expected to close on March 5, 2003. This significant capital raise is primarily intended to fund the pending acquisitions of Mid-Continent natural gas properties from El Paso Corporation and Vintage Petroleum, Inc., which are slated to close in March 2003. Remaining proceeds will be used to reduce outstanding debt under the company's revolving credit facility. If the acquisitions do not materialize, the net proceeds will be allocated for general corporate purposes, including future acquisitions.
Key Highlights
- 1Chesapeake Energy Corporation priced a public offering of 20 million shares of common stock at $8.10 per share.
- 2The offering is expected to close on March 5, 2003.
- 3Proceeds will be used to partially finance the acquisition of natural gas properties from El Paso Corporation and Vintage Petroleum, Inc.
- 4The company also granted underwriters a 30-day option to purchase up to 3 million additional shares for over-allotment.
- 5Net proceeds will be applied to repay amounts outstanding under the company's revolving credit facility.
- 6If acquisitions are not consummated, proceeds will be used for general corporate purposes and potential future acquisitions.
- 7Key underwriters include Credit Suisse First Boston, Morgan Stanley, and Salomon Smith Barney.