logo
Share SHARE
FONT-SIZE Plus   Neg

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Sprint Corp., the third largest U.S. wireless carrier, on Tuesday reported a loss for the fourth quarter that widened from last year on one-time charges and lower revenues. The latest quarter's results include charges related to severance and lease exit costs, including the shutdown of legacy WiMAX service that will free up valuable spectrum and immediately lower network costs. Shares of Infineon Technologies AG were losing around 4 percent in German trading after the manufacturer of semiconductors and system solutions reduced its revenue growth forecast for fiscal 2016. This was despite a surge in second-quarter profit with strong revenues. For the third quarter, the company projects revenue growth sequentially. Halliburton Company (HAL) reported a loss from continuing operations of $2.4 billion, or $2.81 per share, in the first quarter of 2016, compared to a loss of $639 million or $0.75 per share, previous year. Halliburton recorded company-wide charges related primarily to asset impairments and severance...
comments powered by Disqus
Follow RTT