September 10, 2019 - 7:00 AM EDT
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Chesapeake Energy Corporation Exchanges Approximately $588 Million Of Senior Notes And Preferred Shares For Common Shares

OKLAHOMA CITY, Sept. 10, 2019 /PRNewswire/ -- On September 9, 2019, Chesapeake Energy Corporation (NYSE: CHK) entered into a privately negotiated securities exchange agreement under which it has agreed to issue an aggregate of 250,721,554 shares of the company's common stock, par value $0.01 per share, in exchange for: (i) approximately $40.0 million aggregate principal amount of its 5.75% Convertible Preferred Stock; (ii) approximately $112.7 million aggregate principal amount of its 4.875% Senior Notes due 2022; (iii) approximately $129.3 million aggregate principal amount of its 5.75% Senior Notes due 2023; (iv) approximately $155.8 million aggregate principal amount of its 5.5% Convertible Senior Notes due 2026; and (v) approximately $150.0 million aggregate principal amount of its 8.00% Senior Notes due 2027. The company may engage in similar transactions in the future but is under no obligation to do so.

(PRNewsfoto/Chesapeake Energy Corporation)

Doug Lawler, Chesapeake's President and Chief Executive Officer, commented, "We had an opportunity to partner with a large, multi-asset investment manager who believes in the long-term value of our common shares and, in doing so, retired a portion of our debt and preferred stock at a significant discount to its par value and reduced our annual interest and preferred dividend payments by approximately $35 million. We are pleased with the results of this transaction and will continue to focus further debt reduction through a variety of methods including selling non-core assets, improving our capital efficiency and optimizing our capital allocation."

Headquartered in Oklahoma City, Chesapeake Energy Corporation's (NYSE: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States.




INVESTOR CONTACT:

MEDIA CONTACT:

CHESAPEAKE ENERGY CORPORATION

Brad Sylvester, CFA

(405) 935-8870

[email protected]

Gordon Pennoyer

(405) 935-8878

[email protected]

6100 North Western Avenue

P.O. Box 18496

Oklahoma City, OK 73154

 

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SOURCE Chesapeake Energy Corp.


Source: PR Newswire (September 10, 2019 - 7:00 AM EDT)

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