Oklahoma City’s Chesapeake Energy Corporation announced this week the offering of nearly $641 million in new 8% Senior Notes due 2026.
They are being issued by the company in exchange for certain outstanding senior unsecured notes of the company including $162.8 million in 6.625% Senior Notes, $96.8 million of 6.875% notes, $254.5 million in 6.125% Senior Notes and $126.4 million in 5.375% Senior notes.
The note holders have until 5 p.m. New York City time on March 18, 2019 to respond and be a part of the offer. The offer officially expires at 11:59 p.m. New York City time on April 1, 2019.
Eligible Holders of Existing Notes accepted for exchange in the Exchange Offers will also receive a cash payment equal to the accrued and unpaid interest on such Existing Notes accepted in the Exchange Offers from the applicable latest interest payment date to, but not including, the applicable settlement date. Interest on the New Notes will accrue from the date of first issuance of New Notes.
In making the announcement, Chesapeake said the entities acquired in connection with the Company’s acquisition of WildHorse Resource Development Corporation on February 1, 2019 do not guarantee the Company’s revolving credit facility or the Company’s outstanding notes and will not guarantee the New Notes.