Chesapeake Energy to sell notes to pay off debt

OKLAHOMA CITY (AP) -- Chesapeake Energy Corp. said Monday that it will sell $2.3 billion in senior notes and use part of the proceeds to pay off existing debt.

The Oklahoma City-based oil and gas company said the new notes will be issued in three separate series, one due in 2016, another due in 2021 and the last due in 2023.

Part of the proceeds will be used to buy back some of the company's 7.625 percent senior notes due 2013 and 6.875 percent senior notes due 2018 through tender offers that also were launched on Monday. The tender offers are set to expire on April 12, Chesapeake said.

A substantial portion of the remaining net proceeds are expected to be used to redeem the company's 6.775 percent senior notes due 2019 at par value. Any leftover proceeds will be used to later buy back 7.625 percent senior notes due 2013 not acquired through the tender offer and to pay off other debt over time, the company said.

Chesapeake shares fell 17 cents to $22.29 in afternoon trading. They are trading in a 52-week range of $13.32 to $26.09.