Summary
Chesapeake Energy Corporation (CHK) announced on November 26, 2003, that it has successfully obtained the necessary consents from bondholders to amend the indenture governing its 8.5% Senior Notes due 2012. This action, part of a previously announced cash tender offer, aims to eliminate substantially all restrictive covenants within the bond indenture. Bondholders who consented by the specified deadline and tendered their notes will receive a total consideration of $1,063.37 per $1,000 principal amount, which includes the purchase price and a consent payment. The tender offer is contingent on certain conditions, including the completion of a private offering of senior notes to finance the transaction. The offer is scheduled to expire on December 10, 2003, unless extended. Investors should note that this filing pertains to the consent solicitation and tender offer for existing debt, and its success is a step in the company's financing strategy.
Key Highlights
- 1Chesapeake Energy Corporation has received sufficient bondholder consents to amend the indenture for its 8.5% Senior Notes due 2012.
- 2The amendments will effectively remove most of the restrictive covenants in the existing bond indenture.
- 3Bondholders who tendered their notes and consented by the November 25, 2003, deadline will receive $1,063.37 per $1,000 principal amount.
- 4This payment includes a purchase price of $1,033.37 and a consent payment of $30.00, plus accrued interest.
- 5The tender offer is subject to conditions, including the successful completion of a private offering of senior notes to fund the offer.
- 6The tender offer is set to expire on December 10, 2003, unless extended by the company.
- 7The company has engaged Banc of America Securities LLC as the dealer manager and solicitation agent.