Chesapeake Energy Corporation (NYSE: CHK) has priced a public secondary offering of 20 million shares of common stock at $45.75 per share. Before any overallotments and before fees, the net proceeds of this deal come to $915 million.
Chesapeake announced this sale under a shelf registration just on Wednesday. The company intends to use net proceeds initially to repay outstanding debt under its revolving bank credit facility, which it notes may be re-tapped from time to time to fund its recently announced drilling and land acquisition initiatives.
Deutsche Bank, Banc of America Securities, and Lehman Brothers were listed as the joint book-running managers in the underwriting.
On Wednesday, shares closed at $47.36. Yesterday, shares closed at $46.10. Shares are indicated at $46.00 in pre-market trading this morning, slightly above the $45.75 pricing of the secondary offering. Chesapeake’s 52-week trading range is $30.81 to $49.87 and its market cap now sits at $23.7 Billion.
Jon C. Ogg
March 28, 2008