Chesapeake Considers Exchange of $1 billion in Senior Notes

Chesapeake Energy in Oklahoma City is undertaking a proposed massive exchange of more than $1 billion in senior notes. It was revealed in a prospectus filed with the SEC.

In a filing made late last week with the Securities and Exchange Commission, the company said it might offer to exchange $1.3 billion of 8.00% Senior Notes that are due 2025.

A similar exchange might be offered for $1.3 billion in 8.00% Senior Notes due 2027.

The notes, according to the filing will be freely tradable upon exchange and will be issued under the same indenture as the corresponding series of outstanding notes.

However, the company notified the SEC that “the information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective.”

It also made it clear the prospectus was “not an offer to sell these securities, and it is not soliciting any offer to buy these securities in any state where the offer or sale is not permitted.”

 

 

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