Chesapeake Energy (ticker: CHK, exchange: New York Stock Exchange (.N))
News Release -
Chesapeake Energy Corporation Announces Expiration of Cash Tender OfferPrinter Friendly Version (pdf format)
OKLAHOMA CITY, Dec. 29 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it has completed its previously
announced cash tender offer and consent solicitation (the "Offer") for any and
all of its $209,815,000 aggregate principal amount of 8.375% Senior Notes due
2008 (the "Notes") (CUSIP No. 165167AV9). The Offer expired at
12:00 midnight EST on Tuesday, December 28, 2004 (the "Expiration Date"). As
of the Expiration Date, $190,825,000 aggregate principal amount of Notes were
tendered which represented approximately 91% of the outstanding aggregate
principal amount of the Notes.
The Company has accepted for payment and paid for all Notes validly
tendered on or prior to the Expiration Date, including all Notes tendered on
or prior to the December 13, 2004 consent date. In connection with the Offer,
the Company received the required consents from holders of the Notes to
approve proposed amendments (the "Proposed Amendments") to the indenture
governing the Notes to eliminate substantially all of the restrictive
covenants of the indenture. Adoption of the Proposed Amendments required the
consent of holders of at least a majority of the aggregate principal amount of
the outstanding Notes.
The terms of the Offer are described in the Company's Offer to Purchase
and Consent Solicitation Statement dated November 30, 2004, copies of which
may be obtained from MacKenzie Partners, Inc., the information agent for the
Offer, at (800) 322-2885 (US toll free) and (212) 929-5500 (collect).
The Company engaged Deutsche Bank Securities Inc. to act as dealer manager
and solicitation agent in connection with the Offer. Questions regarding the
Offer may be directed to Deutsche Bank Securities Inc., High Yield Capital
Markets, at (800) 553-2826 (US toll-free) and (212) 250-7466 (collect).
This announcement is not an offer to purchase, a solicitation of an offer
to purchase or a solicitation of consent with respect to any securities. The
Offer was made solely by the Offer to Purchase and Consent Solicitation
Statement dated November 30, 2004.
THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF
SECTION 27A OF THE SECURITIES ACT OF 1933 AND SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934. FORWARD-LOOKING STATEMENTS INCLUDE ESTIMATES AND GIVE
OUR CURRENT EXPECTATIONS OR FORECASTS OF FUTURE EVENTS. ALTHOUGH WE BELIEVE
OUR FORWARD-LOOKING STATEMENTS ARE REASONABLE, THEY CAN BE AFFECTED BY
INACCURATE ASSUMPTIONS OR BY KNOWN OR UNKNOWN RISKS AND UNCERTAINTIES.
Chesapeake Energy Corporation is the sixth largest independent producer of
natural gas in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and producing
property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas
Gulf Coast and Ark-La-Tex regions of the United States. The company's
Internet address is http://www.chkenergy.com .
SOURCE Chesapeake Energy Corporation
CONTACT: Marc Rowland, Executive Vice President and Chief Financial
Officer, +1-405-879-9232, or Tom Price, Jr., Senior Vice President -
Investor Relations, +1-405-879-9257, both of Chesapeake Energy Corporation
Web site: http://www.chkenergy.com