Oklahoma City’s Chesapeake Energy Corporation says close to 100 percent of its outstanding Senior notes have been purchased in a pending tender offer on behalf of its subsidiaries, Brazos Valley Longhorn, LLC and Brazos Valley Longhorn Finance Corp.
The company said approximately $616.2 million of nearly 99.74% of the notes were validly tendered and consents validly delivered as of the afternoon of Dec. 19. As a result, Chesapeake stated the requisite consents for the 6.875% Senior Notes due 2025 had been obtained.
Chesapeake also announced that (1) the Financing Condition (as defined in the Offer to Purchase) had been satisfied and (2) it has elected to have an early settlement date of December 23, 2019 for Notes tendered at or prior to the Early Tender Date.
Upon early settlement, each holder who validly tendered their notes prior to the early tender date will receive the total consideration of $1,000 per $1,000 principal amount of notes tendered, which includes $950.00 as the tender offer consideration and $50.00 as the early tender premium.
Chesapeake also announced it entered into an agreement with U.S. Bank National association covering the indenture of the notes.
J.P. Morgan Securities LLC is acting as the dealer manager and solicitation agent in the Tender Offer and Consent Solicitation. Global Bondholder Services Corporation has been retained to serve as both the depositary and the information agent for the Tender Offer and Consent Solicitation.
