By Paul A. Harris
St. Louis, Mo., Aug. 7 - Chesapeake Energy Corp. priced $250 million of senior notes due Aug. 15, 2012 (B1/B+) at 98.389 Wednesday to yield 9¼%, wide of the 8 7/8% area price talk, according to a syndicate source.
Salomon Smith Barney and Lehman Brothers were joint bookrunners. Bear Stearns & Co., Credit Suisse First Boston and Morgan Stanley were co-managers.
Proceeds from the Rule 144A notes will be used to fund three pending acquisitions totaling $132 million, to repay bank debt incurred to purchase $43 million senior notes due 2004, to purchase $38 million of natural gas properties in Oklahoma from The Williams Cos. and for general corporate purposes including the funding of future acquisitions.
The issuer is an Oklahoma City, Okla.-based oil and gas exploration and production company.
Issuer: Chesapeake Energy Corp.
Amount: $250 million
| Maturity: | Aug. 15, 2012
|
| Type: | Senior notes
|
| Bookrunners: | Salomon Smith Barney, Lehman Brothers (joint)
|
| Coupon: | 9%
|
| Price: | 98.389
|
| Yield: | 9¼%
|
| Price talk: | 8 7/8% area
|
| Spread: | 493 basis points
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| Call features: | Callable on Aug. 15, 2007 at 104.5, 103, 101.5, par on Aug. 15, 2010 and thereafter
|
| Equity clawback: | Until Aug. 15, 2005 for 35% at 109
|
| Settlement date: | Aug. 12, 2002
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Rule 144A CUSIP: | 165167AW7
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