CHESAPEAKE ENERGY CORPORATION ANNOUNCES NEW SENIOR SECURED RESERVE-BASED REVOLVING CREDIT FACILITY

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[{"type":"text","content":"OKLAHOMA CITY, Dec. 12, 2022 /PRNewswire/ -- Chesapeake Energy Corporation (NASDAQ:CHK) (the Company) today announced the closing of a new senior secured reserve-based revolving credit facility (the Credit Agreement), which replaces the Company's previous credit facility. Complete terms of the arrangement were filed on Form 8K and can be found on the Company's website at www.chk.com. Highlights of the new agreement are listed below:\n\n \n \n \n \n \n \n\n \nReserve-based credit facility maturity date of five years (to December 9, 2027)Initial borrowing base of $3.5 billion, with semi-annual redetermination; Chesapeake voluntarily maintains aggregate commitments of $2.0 billionInitial facility obligations are guaranteed by certain Chesapeake subsidiaries (the Guarantors) and secured by substantially all of the Company's and the Guarantors' oil and gas assets excluding the Eagle Ford and Brazos Valley assetsInitial facility highlights include a more favorable interest rate grid as well as loosened financial and administrative covenants and administrative burdensCredit Agreement terms change upon receipt of investment grade (IG) ratings by S&P, Moody's and Fitch, as summarized below.Upon and during the receipt of an IG rating from either S&P or Moody's and the satisfaction of certain other conditions:Subsidiary guarantors may be released from their guarantees (subject to certain exceptions) and the collateral terms and certain title covenants will not applyFacility will be unsecured and no longer subject to a borrowing baseUpon receipt of IG ratings from two of S&P, Moody's or Fitch and the satisfaction of certain other conditions:Removal or relaxation of specified negative covenantsFinancial 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,\" said Mohit Singh, Chesapeake's Executive Vice President and Chief Financial Officer. \"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 w...

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