- Chesapeake Energy ( NASDAQ: CHK ) announced the closing of a new senior secured reserve-based revolving credit facility which replaces the company's previous credit facility.
- Reserve-based credit facility maturity date of five years (to December 9, 2027)
- Initial borrowing base of $3.5B, with semi-annual redetermination; company voluntarily maintains aggregate commitments of $2B.
- Financial covenants replaced with debt to capitalization ratio of 65%, or less.
- "This credit facility reflects our continued progress to strengthen our capital structure and the high confidence that our financial partners hold in our Company. We remain focused on safely and efficiently developing our premier natural gas assets, generating significant free cash flow, and continuing to deliver our industry leading returns program. While we are able to access capital markets today at attractive rates, we know the value of an investment grade rating, and are confident we are on the path to achieving it." said Mohit Singh, executive VP and CFO.
For further details see:
Chesapeake Energy gets new senior secured reserve-based revolving credit facility