Chesapeake Energy Corp. (NYSE: CHK) retained Goldman Sachs Bank USA, Citigroup Global Markets Inc. and MUFG to assist with the arrangement of a $1 billion secured five-year term loan, the company said Aug. 15.
The net proceeds from the loan will finance tender offers for unsecured notes. In a separate Aug. 15 press release, the company said that it began tender offers for $500 million in senior notes—up to $400 million of 6.25% euro-denominated notes due 2017; 6.5% notes due 2017 and 7.25% notes due 2018; and no more than $250 million of floating rate notes due 2019; 6.625% notes due 2020; 6.875% notes due 2020; 6.125% notes due 2021; 5.375% notes due 2021; 4.875% notes due 2022; and 5.75% notes due 2023.
Through the five-year term loan and the notes buyback, Oklahoma City-based Chesapeake will be able to retire debt with upcoming maturities.
The loan will be from one or more commercial banks, and will be secured by the same collateral securing the revolving credit facility.
Recommended Reading
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Midstream Builds in a Bearish Market
2024-03-11 - Midstream companies are sticking to long term plans for an expanded customer base, despite low gas prices, high storage levels and an uncertain political LNG future.
Exclusive: Renewables Won't Promise Affordable Security without NatGas
2024-03-25 - Greg Ebel, president and CEO of midstream company Enbridge, says renewables needs backing from natural gas to create a "nice foundation" for affordable and sustainable industrial growth, in this Hart Energy Exclusive interview.
Shipping Traffic Freezes Up in Port Waters After Baltimore Bridge Collapse
2024-03-26 - U.S. port of Baltimore traffic was suspended until further notice following a bridge collapse. At least 13 vessels expected to load coal were anchored near the port at the time of the incident.
US Gulf Coast Heavy Crude Oil Prices Firm as Supplies Tighten
2024-04-10 - Pushing up heavy crude prices are falling oil exports from Mexico, the potential for resumption of sanctions on Venezuelan crude, the imminent startup of a Canadian pipeline and continued output cuts by OPEC+.