Chesapeake Energy Corporation Announces Amended And Restated Senior Secured Revolving Credit Facility

OKLAHOMA CITY, Sept. 12, 2018 /PRNewswire/ -- Chesapeake Energy Corporation (NYSE:CHK) today announced it has amended and restated its senior secured revolving credit facility agreement. The amended and restated facility received initial commitments from 15 institutions totaling $3.8 billion, which exceeded the $3.0 billion borrowing base the company was seeking. The initial borrowing base does not include any properties being sold in the company's $2.0 billion Utica Shale transaction expected to close in the fourth quarter of 2018, thus the borrowing base will not be affected when the transaction closes. The credit facility will mature in September 2023. 

(PRNewsfoto/Chesapeake Energy Corporation)

Nick Dell'Osso, Chesapeake's Executive Vice President and Chief Financial Officer, commented, "We are very pleased with the five-year renewal of our credit facility which demonstrates the confidence of our bank group in Chesapeake's future. We were able to reduce our borrowing base to $3.0 billion based on our significantly improved cash flow profile, operating and capital efficiency and the strength of our portfolio after our planned Utica Shale divestiture. The decreased size of the facility will result in reduced costs while maintaining an ample liquidity backstop with significant cushion to execute an optimal business plan through commodity cycles. Along with our greatly simplified balance sheet, pending significant reduction in outstanding debt and improving operating and financial results, the renewal of our credit facility places Chesapeake in a position of significant strength."

The credit facility is led by MUFG Union Bank, N.A., as administrative agent, co-syndication agent, swingline lender and a letter of credit issuer, and Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A., as co-syndication agents, swingline lenders, and letter of credit issuers. MUFG Union Bank, N.A., Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, BMO Capital Markets Corp., Citicorp North America, Inc., Crédit Agricole Corporate and Investment Bank, Mizuho Bank, Ltd., and Royal Bank of Canada served as joint lead arrangers and joint bookrunners for the transaction. Chesapeake intends to use this credit facility for working capital and general corporate purposes.





Brad Sylvester, CFA

(405) 935-8870

Gordon Pennoyer

(405) 935-8878

6100 North Western Avenue

P.O. Box 18496

Oklahoma City, OK 73154

This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical fact. They include statements that give our current expectations, including statements regarding the Utica Shale disposition and its effect on our borrowing base and statements regarding the intended use of proceeds of the credit facility, and the assumptions on which such statements are based. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate or changed assumptions or by known or unknown risks and uncertainties.  Factors that could cause actual results to differ materially from expected results include the need to obtain consents and approvals and to satisfy closing conditions in connection with the Utica Shale disposition, the termination of the agreement and those described under "Risk Factors" in Item 1A of our annual report on Form 10-K and any updates to those factors set forth in Chesapeake's subsequent quarterly reports on Form 10-Q or current reports on Form 8-K (available at

Headquartered in Oklahoma City, Chesapeake Energy Corporation's (NYSE: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States. The company also owns an oil and natural gas marketing business.



SOURCE Chesapeake Energy Corporation