Summary
Chesapeake Energy Corporation (CHK) announced on December 1, 2003, an offer to exchange its outstanding 8-1/8% Senior Notes due 2011 (the "2011 Notes") for new senior notes. The company is offering holders the option to exchange their 2011 Notes for either new 7-3/4% Senior Notes due 2015 (the "2015 Notes") or new 6-7/8% Senior Notes due 2016 (the "2016 Notes"). This exchange offer is a strategic move to refinance existing debt, potentially lowering the company's overall interest expense and extending its debt maturity profile. The offer is capped at $500 million principal amount of 2011 Notes and includes an early tender payment incentive.
Key Highlights
- 1Chesapeake Energy Corporation is conducting an exchange offer for its 8-1/8% Senior Notes due 2011.
- 2Holders can exchange their 2011 Notes for new 7-3/4% Senior Notes due 2015 or 6-7/8% Senior Notes due 2016.
- 3The exchange offer has a maximum principal amount of $500 million.
- 4An early tender payment of $10.00 per $1,000 principal amount is offered for notes tendered by December 12, 2003.
- 5The offer expires on December 29, 2003, unless extended.
- 6The new notes are being issued as additional notes of previously established series.