Expand Energy Corporation Completes $750 Million Senior Notes Offering

Expand Energy Corporation (OTCMKTS:CHKAQ) recently closed a significant underwritten public offering, issuing $750,000,000 in aggregate principal amount of 5.700% Senior Notes due 2035. The offering, known as the “Notes Offering,” was finalized on December 2, 2024.

The issued Notes have been officially registered under the Securities Act of 1933, following a registration statement on Form S-3 (No. 333-283348) made with the Securities and Exchange Commission (SEC). This registration statement became automatically effective on November 20, 2024, known as the “Shelf Registration Statement.” Details regarding the terms of the Notes can be found in the Company’s prospectus supplement dated November 21, 2024, which was filed with the SEC under Rule 424(b)(2) on November 22, 2024.

The Notes were issued on December 2, 2024, under the Indenture, consisting of the Base Indenture dated December 2, 2024, between Expand Energy Corporation and Regions Bank as Trustee, supplemented by the First Supplemental Indenture also dated December 2, 2024. These documents outline specific terms that are applicable to the Notes issued.

These Senior Notes represent the Company’s senior unsecured obligations and share equal ranking to payment priority concerning the Company’s other current and forthcoming unsecured senior debts, including those from the Company’s existing senior notes and revolving credit facility. The Notes hold a senior position in the right of payment compared to any potential subordinated debt that Expand Energy Corporation may undertake since they are not backed by any of the Company’s subsidiaries, thus standing structurally subordinated to any subsidiary imposed debt.

The Company retains the option to redeem the Notes, either in full or in part, at any point prior to October 15, 2034, referred to as the Par Call Date. Following this date, the Notes can be redeemed, either entirely or partially, at any time and frequency, at a price equivalent to 100% of the principal sum of the Notes being redeemed plus accrued and unpaid interest up to but not including the date of redemption.

The Indenture entails customary terms and covenants, inclusive of restrictions on the Company and certain subsidiaries when incurring liens to secure funded indebtedness or merging with other entities. It also limits the Company’s capacity to consolidate, merge, or transfer assets to another party.

This summary of the Indenture does not constitute a full disclosure; the complete documentation, including the Base Indenture and the First Supplemental Indenture, can be found in Exhibits 4.1 and 4.2, respectively, and are integrated by reference.

In connection with the closing of the Notes Offering, legal opinions from Latham & Watkins LLP and Derrick & Briggs, LLP have been filed regarding the enforceability and legality of the Notes issued during the offering, detailed in Exhibits 5.1 and 5.2, respectively, to be included in the Shelf Registration Statement.

Investors can further peruse financial statements and exhibits related to this transaction in the official filing from Expand Energy Corporation.

The Company’s financial standing and market positioning may witness changes following this notable Notes Offering, which could influence its future growth and strategic initiatives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Chesapeake Energy’s 8K filing here.

Chesapeake Energy Company Profile

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming.