6 hours 49 minutes ago - M2 via Comtex
14 May 2012 - Goldman Sachs Bank USA and affiliates of Jefferies Group Inc (NYSE:JEF) have extended a USD3bn (EUR2.3bn) unsecured loan to Chesapeake Energy Corp (NYSE:CHK), the US natural gas producer said on Friday. The loan expires on 2 December 2017. Borrowings carry an initial variable annual interest rate of LIBOR plus 7.0% until the end of 2012. The current rate is 8.5%, in view of the 1.5% LIBOR floor in the loan accord, Chesapeake noted. The company said that it would deploy the fresh capital for repayment of amounts due under its existing revolver. Chesapeake plans to shed assets for up to USD11.5bn in the third quarter of this year and pay back the new loan with proceeds from the sale. The new facility may be repaid at par, with no penalties, until 31 December 2012. The move boosts Chesapeake's financial flexibility as it proceeds with asset offloads this year, the borrower's chairman and CEO, Aubrey McClendon, said. The new loan ranks on par with the firm's outstanding senior notes. Chesapeake Energy Corp was founded in 1989 and is based in Oklahoma City, Oklahoma. The company zeroes in on discovering and developing unconventional natural gas and oil fields onshore in the United States.