Chesapeake Energy prices $1.3 billion senior notes offering

Chesapeake Energy Corp. has priced its public offering of $1.3 billion principal amount of senior notes due 2019 at 98.75% of par to yield 7%.

The notes will carry an interest rate of 6.775% per annum. The offering was increased from an offering size of $1.0 billion, resulting in net proceeds to the company of $1.26 billion after deducting underwriting discounts and commissions.

Chesapeake Energy expects the issuance and delivery of the senior notes to occur on February 16, 2012, subject to customary closing conditions.

Chesapeake Energy intends to use the net proceeds from the offering for general corporate purposes. Pending such use, the company plans to use the net proceeds from the offering to repay amounts outstanding under its revolving bank credit facility, which it anticipates reborrowing from time to time to meet capital expenditure initiatives.

BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Morgan Stanley & Co. LLC and RBS Securities Inc. acted as joint book-running managers for the offering.

The company intends to list the notes on the New York Stock Exchange after issuance.

Source: Chesapeake Energy