Natural-gas and oil producer Chesapeake Energy Corp. on Monday said it will sell $500 million of contingent convertible senior notes due 2038 in a public offering.
Chesapeake said it plans to use the proceeds from the offering, along with proceeds from its offering of $800 million in senior notes, to fund the redemption of its 7.75 percent senior notes due 2015, repay debt and for general corporate purposes.
The company said it plans to grant the underwriters of the offering an option to purchase up to an additional $75 million of notes to cover over-allotments.
Banc of America Securities, Barclays Capital, Credit Suisse, Goldman, Sachs & Co. and UBS Investment Bank will act as joint underwriters, the company said.
Chesapeake Energy shares fell 94 cents to $58 in aftermarket trading, after rising 16 cents to $58.94 in the regular session.
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