Chesapeake Energy to draw on revolver for WildHorse purchase

By Sara Rosenberg

New York, Oct. 30 – Chesapeake Energy Corp. plans to use borrowings under its revolving credit facility to fund the cash portion of the acquisition of WildHorse Resource Development Corp., according to a news release.

Under the agreement, WildHorse is being bought for, at the election of each WildHorse common shareholder, either 5.989 shares of Chesapeake common stock or a combination of 5.336 shares of Chesapeake common stock and $3 in cash, per share.

The cash portion of the transaction is expected to be between $275 million and about $400 million.

The total transaction value is about $3,977,000,000, including WildHorse’s net debt of $930 million as of June 30.

Closing is expected in the first half of 2019, subject to shareholder approvals from both companies, regulatory approvals and other customary conditions.

Chesapeake is an Oklahoma City-based oil and natural gas company. WildHorse is an oil and gas company with operations in the Eagle Ford Shale and Austin Chalk formations in southeast Texas.

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