Summary
Chesapeake Energy Corporation (NYSE: CHK) announced the expiration of its cash tender offer and consent solicitation for its 8.5% Senior Notes due 2012. The offer, which expired on December 10, 2003, saw approximately 96% of the outstanding notes tendered, totaling $106,379,000 in principal amount. Chesapeake accepted and paid for these tendered notes. In conjunction with the tender offer, Chesapeake successfully obtained the necessary consents from noteholders to amend the indenture governing these notes. These amendments will eliminate substantially all of the restrictive covenants, providing the company with greater financial flexibility. This development is significant as it allows Chesapeake to operate with fewer constraints on its debt obligations.
Key Highlights
- 1Chesapeake Energy Corporation completed its cash tender offer for its 8.5% Senior Notes due 2012.
- 2Approximately 96% of the outstanding notes, valued at $106,379,000, were tendered.
- 3The company accepted and paid for all validly tendered notes.
- 4The tender offer expired on December 10, 2003.
- 5Chesapeake successfully solicited consents to amend the indenture governing the notes.
- 6Substantially all restrictive covenants in the note indenture will be eliminated.
- 7The amendments require consent from a majority of the outstanding note principal amount.