Summary
Chesapeake Energy Corporation (NYSE:CHK) announced on May 20, 2004, the pricing of a private offering of $300 million in senior notes due June 15, 2014. These notes carry a 7.5% interest rate and were priced at 98.269% of par, yielding 7.75% to maturity. The offering is being conducted under Rule 144A, meaning the notes are not registered under the Securities Act of 1933 and may not be offered or sold in the U.S. without registration or an exemption. The primary use of the net proceeds from this debt issuance, along with existing credit facilities and cash, is to fund Chesapeake's pending acquisition of Greystone Petroleum LLC. This strategic move indicates an expansion of the company's operations, reinforcing its position as one of the largest independent U.S. natural gas producers.
Key Highlights
- 1Chesapeake Energy Corporation priced a $300 million offering of 7.5% senior notes due June 15, 2014.
- 2The senior notes were issued privately under Rule 144A, not registered under the Securities Act of 1933.
- 3The offering yielded 7.75% to maturity, priced at 98.269% of par.
- 4Proceeds will be used to finance the pending acquisition of Greystone Petroleum LLC.
- 5The closing of the notes offering is expected on May 27, 2004, subject to customary conditions.
- 6Chesapeake Energy is identified as one of the six largest independent U.S. natural gas producers.
- 7The company's operations focus on exploration, development, and property acquisitions in key U.S. regions.