Chesapeake Energy announced some changes this week in its previously announced exchange offers regarding its outstanding warrants for company shares.
The Company has extended the offering period for each Offer until 11:59 p.m. (New York City time) on September 30, 2022.
Chesapeake’s common stock, Class A warrants, Class B warrants and Class C warrants are listed on The Nasdaq Stock Market LLC under the symbols “CHK,” “CHKEW,” “CHKEZ” and “CHKEL,” respectively. As of August 17, 2022, there were 120,849,720 shares of common stock, 9,751,853 Class A warrants, 12,290,669 Class B warrants and 11,269,865 Class C warrants outstanding.
The company is offering to all holders of the warrants the opportunity to receive a number of shares of common stock to be determined over a ten trading day volume-weighted average trading price measurement period.
A stock warrant is a contract that lets you buy or sell shares of a company’s stock at a specific price on a specific date. Warrants are similar to options contracts, although there are certain big differences between the two.
In each case, the offer is or warrants validly tendered and accepted for exchange pursuant to the Offers, as further described in the Company’s Schedule TO and Prospectus/Offers to Exchange, each, as amended. In connection with the amendment, the measurement period is now scheduled to begin on September 19, 2022.
Tendered warrants may be withdrawn by holders at any time prior to the applicable Expiration Date. Chesapeake may extend or amend an Offer without extending or amending any other Offer.
The offers are being made pursuant to an amended Prospectus/Offers to Exchange dated August 31, 2022, and an amended Schedule TO, dated August 31, 2022, each of which has been filed with the U.S. Securities and Exchange Commission (“SEC”) and more fully set forth the terms and conditions of the Offers.
The Company has engaged Citigroup Global Markets Inc., Cowen and Company, LLC and Intrepid Partners, LLC as the dealer managers for the Offers.