Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Chesapeake Energy Enters Into $3.0 Bln Unsecured Loan - Quick Facts

Chesapeake Energy Corp. (CHK) announced it has entered into a $3.0 billion unsecured loan from Goldman Sachs Bank USA and affiliates of Jefferies Group, Inc.

Chesapeake Energy stated that the net proceeds of the loan, after payment of customary fees and original issue discount (if any), will be utilized to repay borrowings under the company's existing corporate revolving credit facility.

The new facility, which ranks pari passu to Chesapeake's outstanding senior notes, matures on December 2, 2017 and may be repaid at any time this year without penalty at par value and carries an initial variable annual interest rate through December 31, 2012 of LIBOR plus 7.0%, which is currently 8.5%, given the 1.5% LIBOR floor in the loan agreement.

Chesapeake, said during the remainder of the year, it plans to complete asset sales totaling $9.0 billion -$11.5 billion and intends to use a portion of the proceeds from these asset sales to repay the loan.

Chesapeake has received strong interest from prospective buyers of its Permian Basin asset sales process and its Mississippi Lime joint venture process, and the company expects to complete these two transactions in the 2012 third quarter.

Click here to receive FREE breaking news email alerts for Chesapeake Midstream Partners, L.P. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Firms responding to a survey by the Federal Reserve Bank of Philadelphia indicated continued growth in regional manufacturing activity in September, although the bank said the index of activity in the sector fell from its relatively high reading in August. Stocks have moved mostly higher in early trading on Thursday, extending a recent upward move by the markets. The major averages have all climbed into positive territory, with the Dow reaching a new record intraday high. With new construction of multi-family homes showing a substantial pullback, the Commerce Department released a report on Thursday showing a much steeper than expected drop in U.S. housing starts in the month of August.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.