Chesapeake Energy Corporation Announces Pricing of $2.0 Billion Unsecured Term Loan

  Chesapeake Energy Corporation Announces Pricing of $2.0 Billion Unsecured
  Term Loan

Business Wire

OKLAHOMA CITY -- November 07, 2012

Chesapeake Energy Corporation (NYSE:CHK) today announced the pricing of an
unsecured five-year term loan facility in an aggregate principal amount of
$2.0 billion arranged by Bank of America, N.A., Goldman Sachs Bank USA and
Jefferies Finance LLC. The new facility, which will be syndicated to a large
group of institutional investors, was priced at 98% of par. Amounts borrowed
under the new facility will bear interest at LIBOR plus 4.50%. The LIBOR rate
is subject to a floor of 1.25% per annum. The new facility will rank pari
passu with Chesapeake’s outstanding senior notes and contingent convertible
senior notes and will mature on December 2, 2017. The new facility is
non-callable in the first year but may be voluntarily repaid in the second and
third years at par value plus a specified call premium and may be voluntarily
repaid at any time thereafter at par value. The new facility is expected to
close on November 9, 2012, subject to the execution of definitive loan
documents and the satisfaction of closing conditions.

Chesapeake will use the net proceeds of the new term loan facility to fully
repay the remaining outstanding borrowings under the company’s existing May
2012 term loan facility and to repay outstanding borrowings under the
company’s corporate revolving credit facility. This loan will enhance the
company’s liquidity and financial flexibility as it continues to execute its
previously announced asset sales strategy and will allow the future repayment
of higher cost debt.

This news release includes "forward-looking statements" that give Chesapeake's
current expectations. Although we believe the expectations reflected in our
forward-looking statements are reasonable, we can give no assurance they will
prove to have been correct. They can be affected by inaccurate assumptions or
by known or unknown risks and uncertainties, and actual results may differ
from the expectation expressed. We may be unable to complete our previously
announced planned asset sales as scheduled or at all. Our planned asset sales
may not generate the proceeds needed to allow for the repayment of higher cost
debt. We caution you not to place undue reliance on our forward-looking
statements, which speak only as of the date of this news release, and we
undertake no obligation to update this information.

Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of
natural gas, a Top 15 producer of oil and natural gas liquids and the most
active driller of new wells in the U.S. Headquartered in Oklahoma City, the
company's operations are focused on discovering and developing unconventional
natural gas and oil fields onshore in the U.S. Chesapeake owns leading
positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa,
Mississippi Lime and Niobrara unconventional liquids plays and in the
Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale
plays. The company also owns substantial marketing and oilfield services
businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and
Chesapeake Oilfield Services, L.L.C. Further information is available at
www.chk.com where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.

Contact:

Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
John J. Kilgallon, 405-935-4441
john.kilgallon@chk.com
or
Media Contacts:
Michael Kehs, 405-935-2560
michael.kehs@chk.com
or
Jim Gipson, 405-935-1310
jim.gipson@chk.com
 
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