WASHINGTON (dpa-AFX) - Chesapeake Energy Corp. (CHK) said Thursday that it has priced its public offering of $3.0 billion in aggregate principal amount of its senior notes at par.
The notes will be issued in two separate series of notes: $1.5 billion in Floating Rate Senior Notes due 2019 that will bear interest at LIBOR plus 3.25%, reset quarterly, and $1.5 billion in 4.875% Senior Notes due 2022.
Chesapeake expects the issuance and delivery of the two series of senior notes to occur on April 24.
Chesapeake plans to use the net proceeds from the offering to repay its existing unsecured term loan, redeem its 6.875% Senior Notes due 2018 and purchase the portion of its 9.50% Senior Notes due 2015 that are tendered in its concurrent tender offer for such notes. Any remaining portion of the net proceeds will be used for general corporate purposes, which may include the purchase, repayment and/or redemption of outstanding indebtedness.
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