What is the principal amount and interest rate of the new debt?

Chesapeake Energy has issued $600 million in aggregate principal amount of Senior Notes with a fixed interest rate of 6.625% per annum.

When do these Senior Notes mature and when are interest payments due?

The Senior Notes mature on January 15, 2016. Interest payments will be made semi-annually on January 15 and July 15 of each year, with the first payment scheduled for July 15, 2005.

How do these notes rank in the company's capital structure?

The notes are designated as senior unsecured obligations of Chesapeake Energy. They rank equally with all existing and future unsecured senior debt and senior to any subordinated unsecured debt. However, they are effectively subordinated to any secured debt of the company and its guarantor subsidiaries, as well as debt of any non-guarantor subsidiaries.

Are there any provisions for early redemption of these notes?

Yes, Chesapeake Energy may redeem some or all of the notes at any time after July 15, 2010, at specified redemption prices. Additionally, the company has the flexibility to redeem up to 35% of the notes using proceeds from certain equity offerings completed on or before July 15, 2008.

EXPAND ENERGY Corp 8-K: Financial Events

Summary

Chesapeake Energy Corporation (EXE) filed an 8-K on April 25, 2005, to report the execution of an Indenture for $600 million of 6.625% Senior Notes due 2016, effective April 19, 2005. This filing is significant as it details a substantial debt issuance that will mature in 2016, with interest payable semi-annually. The notes represent senior unsecured obligations of the company, ranking equally with existing and future unsecured senior debt. They will be guaranteed by restricted subsidiaries on a senior unsecured basis, but will be effectively subordinated to secured debt and debt of non-guarantor subsidiaries.

Key Highlights

1Chesapeake Energy issued $600 million in 6.625% Senior Notes due 2016.
2The notes bear interest at a fixed rate of 6.625% per annum.
3Interest payments are scheduled semi-annually on January 15 and July 15, starting July 15, 2005.
4The notes mature on January 15, 2016.
5The company has the option to redeem the notes under specific conditions, including a call option after July 15, 2010, and potential redemption using proceeds from equity offerings prior to July 15, 2008.
6The notes are senior unsecured obligations, ranking pari passu with existing and future unsecured senior debt.
7The notes are guaranteed by existing and future restricted subsidiaries on a senior unsecured basis, but are effectively subordinated to secured debt.

EXPAND ENERGY Corp 8-K Report, Financial Obligation (Apr 25, 2005)

Summary

Key Highlights

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