This excerpt taken from the CHK 8-K filed Nov 15, 2005.
6.875% Senior Notes due 2020
On November 8, 2005, we issued $500 million aggregate principal amount of 6.875% Senior Notes due 2020. The notes are governed by an indenture dated as of November 8, 2005 among the Company, as issuer, each of its subsidiaries, as guarantors, and The Bank of New York Trust Company, N.A., as trustee. Interest on the notes accrues at an annual rate of 6.875% and will be payable semi-annually on May 15 and November 15 of each year, commencing May 15, 2006. The notes will mature on November 15, 2020.
We may redeem some or all of the notes at any time, at the make-whole price described in the indenture.
The notes are our senior unsecured obligations and rank equally in right of payment with all of our existing and future senior debt and senior to any subordinated debt that we may incur. The notes are guaranteed on a senior unsecured basis by all our existing subsidiaries and will be guaranteed by each of our future domestic subsidiaries that guarantees any other indebtedness of us or a subsidiary guarantor in excess of $5 million. The notes will be effectively subordinated to our and our guarantor subsidiaries existing and future secured debt, including debt under our revolving bank credit facility, to the extent of the value of the assets securing such debt. The notes will also be effectively subordinated to the debt of any non-guarantor subsidiaries.
The following are events of default with respect to the notes:
Under a registration rights agreement which was executed as part of the offering of the notes, we have agreed to file a registration statement with the Securities and Exchange Commission within 120 days after November 8, 2005 enabling the holders of the notes to exchange the notes for publicly registered notes with identical terms; use our best efforts to cause the registration statement to become effective within 240 days after November 8, 2005; consummate the exchange offer within 60 business days after the effective date of our registration statement; file a shelf registration statement for the resale of the notes if we cannot effect an exchange offer within the time periods listed above and in some other circumstances; and if a shelf registration statement is required, use our best efforts to cause the shelf registration statement to be declared effective and to keep the shelf registration statement effective until the earlier of two years from the date of the effectiveness of the shelf registration statement or the time when all of the notes covered by the shelf registration statement have been sold or when they may be sold pursuant to Rule 144 under the Securities Act, subject to certain exceptions. We will pay additional interest on the notes if we are not in compliance with our obligations under the registration rights agreement.
A copy of the indenture governing the notes is attached to this report as Exhibit 4.1.1. A copy of the registration rights agreement is attached to this report as Exhibit 4.1.3.