New Issue: Chesapeake Energy $300 million 10-year notes yield 7 5/8%

By Paul A. Harris

St. Louis, Feb. 28 - Chesapeake Energy Corp. priced $300 million of 7½% senior notes due Sept. 15, 2013 (Ba3/B+) at 99.102 Friday to yield 7 5/8%, according to a syndicate source.

Price talk was for a yield in the 7 5/8% area.

Salomon Smith Barney, Credit Suisse First Boston and Bear Stearns & Co. were joint bookrunners.

Proceeds from the Rule 144A notes will be used to help finance the acquisition of natural gas properties from El Paso Corp.

The issuer is an Oklahoma City independent natural gas producer.

Issuer:	Chesapeake Energy Corp.
Amount:	$300 million
Maturity:	Sept. 15, 2013
Security description:	Senior notes
Bookrunners:	Salomon Smith Barney, Credit Suisse First Boston, Bear Stearns (joint)
Coupon:	7 ½%
Price:	99.102
Yield:	7 5/8%
Spread:	387 basis points
Call features:	Non-callable for 5.5 years, then callable on Sept. 15, 2008 at 103.75, 102.5, 101.25, declining to par on Sept. 15, 2011 and thereafter
Equity clawback:	Until Sept. 15, 2006 for 35% at 107.5
Settlement date:	March 5, 2003
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Rule 144A Cusip:	165167BB2
Price talk:	7 5/8% area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.