Chesapeake Prices Public Offering of 25MM Shares
Chesapeake Energy Corporation has priced a public offering of 25 million shares of its common stock at $57.25 per share. The company has also granted the underwriters a 30-day option to purchase a maximum of 3.75 million additional shares of its common stock. Chesapeake expects the issuance and delivery of the shares to occur on July 15, 2008, subject to customary closing conditions.
Chesapeake intends to use the net proceeds from the offering to temporarily repay outstanding indebtedness under its revolving bank credit facility which it anticipates reborrowing from time to time to fund its recently announced drilling and land acquisition initiatives and for general corporate purposes. The offering is being made pursuant to an effective registration statement filed with the Securities and Exchange Commission.
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