OKLAHOMA CITY, Dec. 4, 2019 /PRNewswire/ -- Chesapeake
Energy Corporation (NYSE:CHK) announced today that it has engaged
JPMorgan Chase Bank, N.A., Morgan Stanley Bank, N.A., Bank of
America, N.A. and MUFG Bank, N.A. to assist with the arrangement of
a secured first lien last out 4.5-year term loan facility in the
aggregate principal amount of up to $1.5
billion. Chesapeake intends to use the net proceeds of the
loan to finance a tender offer and consent solicitation announced
today for unsecured notes issued by Brazos Valley Longhorn, L.L.C.
("Brazos Valley") and Brazos Valley Longhorn Finance Corp., each a
wholly owned subsidiary of Chesapeake, and to fund the retirement
of Brazos Valley's existing secured revolving credit facility.
Chesapeake expects these transactions to improve its financial
flexibility, as they will allow Brazos Valley and its subsidiaries
to support Chesapeake's current and future debt.
The loan will be from one or more commercial banks, and will be
secured by the same collateral securing Chesapeake's existing
revolving credit facility (with a position in the collateral
proceeds waterfall junior to the revolving credit facility).
Amounts borrowed under the new term loan facility will be
unconditionally guaranteed on a joint and several basis by
Chesapeake's direct and indirect wholly owned domestic subsidiaries
that are guarantors under the company's revolving credit facility,
including Brazos Valley and its subsidiaries upon the closing of
the term loan facility.
Chesapeake's ability to establish the new term loan facility and
borrow thereunder will be subject to the receipt of commitments
from lenders to provide the term loan facility, the negotiation and
execution of definitive loan documents, the success of the consent
solicitation and other customary conditions.
Headquartered in Oklahoma
City, Chesapeake Energy Corporation's (NYSE: CHK) operations
are focused on discovering and developing its large and
geographically diverse resource base of unconventional oil and
natural gas assets onshore in the United
States.
This news release includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including the
amount and terms of the term loan and the use of proceeds thereof.
Forward-looking statements are statements other than statements of
historical fact. Although we believe the expectations and forecasts
reflected in the forward-looking statements are reasonable, we can
give no assurance they will prove to have been correct. They can be
affected by inaccurate or changed assumptions or by known or
unknown risks and uncertainties. Factors that could cause
actual results to differ materially from expected results include
our ability to comply with the covenants under our revolving credit
facilities and other indebtedness and the related impact on our
ability to continue as a going concern, the volatility of oil,
natural gas and NGL prices and other factors described under "Risk
Factors" in Item 1A of our annual report on Form 10-K and any
updates to those factors set forth in Chesapeake's subsequent
quarterly reports on Form 10-Q or current reports on Form
8-K.
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
Brad Sylvester,
CFA
|
Gordon
Pennoyer
|
(405)
935-8870
|
(405)
935-8878
|
ir@chk.com
|
media@chk.com
|
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SOURCE Chesapeake Energy Corporation