OREANDA-NEWS. Chesapeake Energy Corporation (NYSE:CHK) today announced that it has commenced a private placement to eligible purchasers of $850 million aggregate principal amount of convertible senior notes due 2026. The notes will be convertible, under certain circumstances, into cash, Chesapeake common stock or a combination of cash and Chesapeake common stock, at Chesapeake's election.

Chesapeake intends to use the net proceeds from the offering for general corporate purposes, which may include debt repurchases and the repayment of its credit facility and senior notes with near-term maturities as they become due. The company also intends to grant the initial purchasers of the proposed offering a 30-day option to purchase up to an additional $150 million aggregate principal amount of notes.

The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The offer and sale of the notes, the related subsidiary guarantees and the shares of common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws.