Chesapeake Energy Corp chairman and chief executive officer Aubrey K. McClendon said, "This short-term loan from Goldman and Jefferies provides us with significant additional financial flexibility as we execute our asset sales during the remainder of 2012."
The loan matures on 2 December 2017, and can be repaid at a variable interest rate of 8.5%, including 1.5% London Interbank Offered Rate floor in the loan agreement.
The company is also planning to close its asset sales to raise $9.0-$11.5bn and use the amount to repay the loan.
Chesapeake is expecting to close the sales of its two transactions Permian Basin and Mississippi Lime joint venture process in the third quarter of 2012.
