Share “Chesapeake secures $2 billion loan”

Chesapeake secures $2 billion loan

Chesapeake Energy Corp. has secured a $2 billion loan to repay debt.
BY JAY F. MARKS Business Writer Modified: November 1, 2012 at 9:48 am •  Published: November 1, 2012

Hours before the release of its third-quarter earnings, Chesapeake Energy Corp. announced Thursday it has secured a $2 billion loan to repay debt and enhance its financial flexibility.

“The board and management believe current corporate loan market conditions offer attractive refinancing opportunities on favorable terms,” Chesapeake Chairman Archie W. Dunham said. “By using the proceeds of this loan to repay more costly debt and provide excess liquidity, we will enhance our financial flexibility and ensure our ability to complete our planned asset sales efficiently.”

Bank of America, Goldman Sachs Bank and Jefferies Finance LLC will help Chesapeake arrange the unsecured term loan facility.

Chesapeake has spent much of this year trying to sell assets outside of its core holdings to stave off a looming funding deficit.

The company, which is switching its focus from natural gas to oil, recently completed the sale of some of its acreage in Texas' Permian Basin, bringing its total yield from 2012 asset sales to about $11.6 billion. That is about 85 percent of Chesapeake's stated goal.

“We continue to believe that Chesapeake's portfolio of assets and dedicated employees are second to none, and we have confidence in the company's ability to achieve its stated financial and operational goals,” Dunham said. “The board and management remain committed to reducing debt levels to $9.5 billion or below as we execute on a more focused drilling program on our existing assets.”

Continue reading this story on the...


  1. 1
    Victim arrested after armed robbery at east Tulsa hotel
  2. 2
    Brandon Weeden out, Matt Cassel in as Dallas Cowboys starting quarterback
  3. 3
    Former OU recruit confesses to attacking, killing Dallas jogger, police say
  4. 4
    Report: U.S most obese in the world, fattest kids by a mile, tops for poor teen health
  5. 5
    World’s biggest beer makers agree to join forces
+ show more


× Trending energy Article