OKLAHOMA CITY--(BUSINESS WIRE)--
Chesapeake Oilfield Operating, L.L.C., (the “Company”), an indirect
wholly-owned subsidiary of Chesapeake Energy Corporation (“Chesapeake”)
(NYSE: CHK) that will be renamed Seventy Seven Energy Inc. in connection
with its previously announced spin-off from Chesapeake, announced today
the pricing of $500 million in aggregate principal amount of 6.5% senior
unsecured notes due 2022 (the “Notes”) in a private placement under
Rule 144A and Regulation S of the Securities Act of 1933, as amended
(the “Securities Act”), to eligible purchasers. The Notes mature on July
15, 2022 and will be issued at par.
The Company intends to use the net proceeds from the private placement
to make a cash distribution to COS Holdings, L.L.C., its direct parent,
to repay all outstanding indebtedness under the Company’s new asset
backed lending credit facility to be entered into in connection with the
spin-off and for general corporate purposes. The offering of the Notes
is not conditioned on the consummation of the spin-off from Chesapeake.
The offering of the Notes is expected to close on June 26, 2014, subject
to customary conditions.
The securities to be sold have not been registered under the Securities
Act, or any state securities laws, and unless so registered, the
securities may not be offered or sold in the United States except
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable state
securities laws. The Company plans to offer and sell the notes only to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act and to persons outside the United States pursuant to
Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any of these securities, nor shall
there be any sale of these securities in any state in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of such states.
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas and the 10th largest producer of oil and natural
gas liquids in the U.S.Headquartered in Oklahoma City,
the company's operations are focused on discovering and developing its
large and geographically diverse resource base of unconventional natural
gas and oil assets onshore in the U.S.The company also
owns substantial marketing, compression and oilfield services
businesses. Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
About Chesapeake Oilfield Operating, L.L.C. (to be renamed Seventy
Seven Energy Inc.)
Chesapeake Oilfield Operating, L.L.C. is currently an indirect
wholly-owned subsidiary of Chesapeake Energy Corporation. The Company is
a diversified oilfield services company that provides a wide range of
wellsite services and equipment to U.S. land-based exploration and
production customers operating in unconventional resource plays. The
Company’s primary services include drilling, hydraulic fracturing,
oilfield rentals, rig relocation and water transport and disposal. The
Company is headquartered in Oklahoma City, Oklahoma.
This press release includes statements that may constitute
forward-looking statements. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. Factors that can affect future results are
discussed in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2013, and other reports filed by the Company from time to
time with the Securities and Exchange Commission. The Company undertakes
no obligation to update or revise any forward-looking statement to
reflect new information or events.
Chesapeake Energy Corporation
T. Clark, CFA, 405-935-8870
Gordon Pennoyer, 405-935-8878
Source: Chesapeake Energy Corporation