By james art 
On October 28, 2024, Chesapeake Energy, operating as Expand Energy Corporation, disclosed the signing of multiple significant agreements and the completion of key events. As described in a Form 8-K filed with the US Securities and Exchange Commission, the company’s actions demonstrate strategic financial moves aimed at improving its market position.
In a step described as an “Investment Rating Date Event,” Chesapeake Energy entered into several additional agreements on October 28, 2024. These agreements, including the Tenth Additional Agreements with Regions Bank and US Bank Trust Company, National Association, relate to various senior Notes due in subsequent years. The completion of these agreements resulted in the release of the Subsidiary Guarantors from their obligations under the respective agreements.
In addition, as part of the investment grade date event, certain restrictive covenants under the 2026 Contract and the 2029 Contract were removed, providing Chesapeake Energy with greater flexibility going forward.
In addition, on the same date, Chesapeake Energy successfully satisfied the conditions established for the “Investment Rating Date” under its credit agreement dated December 9, 2022. This achievement resulted in an automatic modification of the credit agreement in its entirety with JPMorgan Chase Bank, N.A. , as administrative agent and collateral. The Company saw the release of liens and guarantees previously granted by Chesapeake Energy and its subsidiaries, marking a significant development known as an “Investment Rating Date Event.”
As part of the credit agreement, Chesapeake Energy retains aggregate commitments of $2.5 billion, along with specific sub-limits for various financing operations. The agreement outlines restrictive covenants typical of investment grade credit facilities covering areas such as senior indebtedness, mergers, dividends, liens, sales of assets and transactions with affiliates. In addition, the agreement includes provisions to maintain a debt-to-capitalization ratio not exceeding 65%, along with customary events of default and remedies associated with such credit facilities.
Borrowings under the Credit Agreement may be in the form of Alternative Prime Rate Loans or SOFR Term Loans at Chesapeake Energy’s discretion. Interest payment terms vary for each type of loan, with periodic rates based on the Company’s unsecured debt ratings.
Chesapeake Energy has provided copies of the Supplemental Indentures and the Credit Agreement as exhibits to the Form 8-K filing, allowing interested parties to delve into the specifics of the agreements. The company signed the document on November 1, 2024, confirming the validity and completeness of the disclosed information.
This article is generated by an automated content engine and reviewed by a human editor before publication. For additional information, read Chesapeake Energy’s 8K filing here.
Chesapeake Energy Company Profile
(Get a free report)
Chesapeake Energy Corp. is an independent exploration and production company engaged in the 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.
Further reading