The FINANCIAL — Chesapeake Energy Corporation (NYSE: CHK) on April 18 announced the early tender results for its previously announced cash tender offers to purchase a portion of the outstanding principal amount of each series of its senior notes listed in the table below (collectively, the "Notes").
The tender offers are being made pursuant to the terms of the Offer to Purchase dated April 4, 2011 (the "Offer to Purchase") and the related Letter of Transmittal.
"The column in the table above entitled "Early Tender Results" shows the aggregate principal amount of each series of Notes that was validly tendered (and not validly withdrawn) in the tender offers as of 5:00 p.m., New York City time, on April 15, 2011, which was the early tender deadline. Holders who validly tendered (and did not validly withdraw) their Notes prior to the early tender deadline, and whose Notes are accepted for purchase by Chesapeake, will receive in cash, for each $1,000 or EUR 1,000 in principal amount, as applicable, of Notes tendered, the applicable Total Consideration, as set forth in the Offer to Purchase, which includes the applicable early tender premium of $20.00 per $1,000 (or EUR 20.00 per EUR 1,000, as applicable) in principal amount of Notes. The Total Consideration with respect to each series of Notes has not been changed," the company informed.
Chesapeake also announced that it has increased the tender offer Series Maximum with respect to its 6.250% Euro-denominated Senior Notes due 2017. The table above sets forth the principal amount of such series of Notes that Chesapeake originally offered to purchase and the increased principal amount of such series of Notes that Chesapeake is offering to purchase in the columns entitled "Original Series Maximum" and "Revised Series Maximum," respectively. Chesapeake reserves the right to further increase the Series Maximum for one or more series of Notes in the tender offers at any time on or before the applicable expiration date for any series of Notes in the tender offers.
If the aggregate principal amount of Notes of any series validly tendered (and not validly withdrawn) and accepted for purchase by Chesapeake exceeds the Original Series Maximum or the Revised Series Maximum, as applicable, for such series of Notes, Chesapeake will accept tendered Notes of such series on a pro rata basis, as more fully set forth in the Offer to Purchase, according to the company.
The tender offers are scheduled to expire at 11:59 p.m., New York City time, on April 29, 2011 (unless extended or earlier terminated). Holders whose Notes are validly tendered (and not validly withdrawn) and accepted for purchase by Chesapeake after the early tender deadline but before the expiration date of the tender offers will receive in cash, for each $1,000 or EUR 1,000 in principal amount, as applicable, of Notes tendered, the applicable Purchase Price set forth in the Offer to Purchase, which does not include the early tender premium. The Purchase Price with respect to each series of Notes has not been changed.
In addition, holders will receive, in respect of their Notes that are accepted for purchase, accrued and unpaid interest on the principal amount of the accepted Notes to, but not including, the applicable settlement date of the tender offers, which will be promptly after the expiration date.
This announcement is not an offer to purchase or a solicitation of an offer to sell the Notes or any other securities. The tender offers are only being made pursuant to the terms of the Offer to Purchase and the related Letter of Transmittal.
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