Chesapeake Arranges $1 bln Loan, Buying Back Notes

Chesapeake Energy Corp, the second-largest U.S. natural gas producer, said on Monday that it had arranged a $1 billion 5-year term loan that it would use to buy back senior notes due between 2017 and 2038.

The company, whose total debt stood at about $8.68 billion as of June 30, said it had commenced tender offers to buy back $500 million of convertible senior notes due 2037 and 2038.

The company said it also commenced tender offers to buy back another $500 million of senior notes due between 2017 and 2023.

Chesapeake said Goldman Sachs Bank USA, Citigroup Global Markets Inc and MUFG helped arrange the term loan.

The company last week announced the sale of its Barnett shale acreage in Texas and said it renegotiated an expensive pipeline contract, steps estimated to save it more than $1.9 billion in future liabilities.

Reporting by Vishaka George