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TheStreet Open House

Chesapeake Energy Corporation Announces Arrangement Of $2.0 Billion Unsecured Term Loan Facility

Stocks in this article: CHK

Amounts borrowed under the new term loan facility will be unsecured and will be unconditionally guaranteed on a joint and several basis by Chesapeake’s direct and indirect wholly owned domestic subsidiaries that are subsidiary guarantors under the company’s existing senior notes indentures. The new term loan facility will permit Chesapeake to repay other unsecured indebtedness, including amounts outstanding under the existing term loan facility, Chesapeake’s 6.775% Senior Notes due 2019, Chesapeake’s 7.625% Senior Notes due 2013 and up to $1.2 billion of other senior unsecured indebtedness. Additionally, the new term loan facility will permit Chesapeake to refinance its existing senior unsecured indebtedness with longer-dated senior unsecured notes.

Chesapeake's ability to establish the new facility and borrow thereunder will be subject to the receipt of commitments from lenders to provide the facility, the negotiation and execution of definitive loan documents and other customary conditions.

This news release includes "forward-looking statements" that give Chesapeake's current expectations. Although we believe the expectations reflected in our forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and actual results may differ from the expectation expressed. The final terms of the new loan facility, if it is established, and the use of proceeds may differ from the expectations announced. We may be unable to complete our planned asset sales as scheduled or at all, and they may not generate the proceeds we are anticipating. Our ability to consummate asset sales is dependent upon market conditions and other factors beyond our control, and our plans to reduce indebtedness are in large part dependent upon asset sales we expect to make. We may not be successful in achieving a balance between drilling capital expenditures and operating cash flow in the anticipated time frame.. We caution you not to place undue reliance on our forward-looking statements, which speak only as of the date of this news release, and we undertake no obligation to update this information.

Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S. Headquartered in Oklahoma City, the company's operations are focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S. Chesapeake owns leading positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara unconventional liquids plays and in the Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale plays. The company also owns substantial marketing and oilfield services businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and COS Holdings, L.L.C. Further information is available at www.chk.com where Chesapeake routinely posts announcements, updates, events, investor information, presentations and news releases.



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