Chesapeake Energy Corporation Announces Private Placement of $600 Million of 5.75% Cumulative Non-Voting Convertible Preferred Stock with Two Investors in Asia

According to the Press Release, “Chesapeake Energy Corporation today announced a private placement of convertible preferred stock. The company has entered into securities purchase agreements with Maju Investments (Mauritius) Pte Ltd, an affiliate of Temasek Holdings (Private) Limited, and Hampton Asset Holding Ltd., an affiliate of Hopu Investment Management Co, Ltd., under which they have collectively agreed to buy $600 million of a new series of Chesapeake 5.75% cumulative non-voting convertible preferred stock with a liquidation preference of $1,000 per share. The closing of the preferred stock placement is scheduled for May 17, 2010 and is subject to customary conditions. The company has also granted a 30-day option to the two purchasers to place up to $500 million in additional preferred stock of the same series with investors in Asia. Chesapeake intends to use the net proceeds from the placements to repay senior indebtedness.”

read more: Chesapeake Energy Corporation Press Release

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