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Chesapeake Energy prices public offering of USD1.0bn senior notes due 2021.

M2 EQUITYBITES-February 9, 2011-Chesapeake Energy prices public offering of USD1.0bn senior notes due 2021(C)2011 M2 COMMUNICATIONS

Producer of natural gas Chesapeake Energy Corporation (NYSE:CHK) disclosed on Tuesday that its public offering of USD1.0bn total of senior notes due 2021, has been priced.

The notes were priced at par and carry an interest rate of 6.125% per annum. Chesapeake expects the issuance and delivery of the senior notes to occur on February 11, 2011, subject to customary closing conditions.

Proceeds will repay outstanding debt under its revolving bank credit facility from which it will reborrow at times to for capital expenditure initiatives and general corporate purposes as well.

Additionally, the company's 2011 liability management programme expects to extend the maturity profile of its outstanding debt and also retire about USD2.0 to USD3.0bn of its shorter-dated senior notes with the proceeds from its mentioned planned asset sales, as part of this offering.

The offering has been made under a shelf registration statement filed in August2010 with the US Securities and Exchange Commission and these the notes will be listed on the New York Stock Exchange after issuance, the company said.

The acting joint book-running mangers are Morgan Stanley & Co Incorporated and Wells Fargo Securities LLC.

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Publication:M2 EquityBites (EQB)
Date:Feb 9, 2011
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