Chesapeake Energy Corporation (NYSE:CHK) and Bronco Drilling Company, Inc. (NASDAQ: BRNC) today announced that they entered into an agreement in principle on May 27, 2011 as to the key terms of the settlement agreement in connection with the putative consolidated class action, captioned Shriver v. Bronco Drilling Company, Inc., et al. (CJ-2011-2723), filed in the District Court of Oklahoma County, Oklahoma. Pursuant to that agreement, Nomac Acquisition, Inc., Chesapeake’s indirect wholly owned subsidiary, has extended its cash tender offer to purchase all outstanding shares of common stock of Bronco. The cash tender offer was previously scheduled to expire at 12:00 midnight, New York City time, on Tuesday, May 31, 2011 and will now expire at 5:00 p.m., New York City time, on Friday, June 3, 2011, unless further extended in accordance with the merger agreement, applicable rules and regulations and the procedures described in the Offer to Purchase. Pursuant to the cash tender offer, Nomac Acquisition, Inc. is offering to purchase all outstanding Bronco shares for $11.00 per share in cash, without interest and less any required withholding taxes. The extension of the tender offer will afford Bronco stockholders additional time to receive and consider supplemental disclosures in the Schedule 14D-9 filed by Bronco today in connection with the agreement in principal. Accordingly, unless further extended, the tender offer and withdrawal rights will expire at 5:00 p.m., New York City time, on Friday, June 3, 2011. The tender offer remains subject to satisfaction of other customary closing conditions described in the Offer to Purchase. The complete terms and conditions of the tender offer are set forth in the Offer to Purchase and related Letter of Transmittal that have been sent to holders of Bronco common stock. Copies of the Offer to Purchase and Letter of Transmittal may be obtained at no charge from the information agent, MacKenzie Partners, Inc., by calling (800) 322-2885 (toll-free) or (212) 929-5500 (collect). Additionally, any questions related to the tender offer may be directed to MacKenzie Partners, Inc. at the telephone numbers provided above.
Bronco Drilling Company Incorporated (Nasdaq:BRNC) is trading at unusually high volume Friday with 2.8 million shares changing hands. It is currently at 7.6 times its average daily volume and trading up 67 cents (+6.4%).
Bronco Drilling Company Incorporated (Nasdaq:BRNC) hit a new 52-week high Thursday as it changed hands at $11.61 compared with its previous 52-week high of $11.24. Bronco is currently trading at $11.44 with 115,587 shares changing hands as of 10:25 a.m.