Chesapeake Energy borrows $3 billion


May 15, 2012 at 9:24a.m.

Chesapeake Energy borrows $3 billion

oklahoma city

Chesapeake Energy Corporation announced Monday the company had taken $3 billion unsecured loan from Goldman Sachs Bank USA and affiliates of Jefferies Group, Inc.

The loan will be used to repay borrowings under the company’s existing corporate revolving credit facility.

During 2012, the company plans to complete asset sales for between $9 billion and 11.5 billion and will use part of the proceeds from these sales to repay the loan. Chesapeake has received interest from prospective buyers of its Permian Basin assets and its Mississippi Lime joint venture process. Chesapeake expects to complete these two transactions in the third quarter of 2012.