Chesapeake Energy 2013 Annual Report Download - page 96

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
88
3. Debt
Our long-term debt consisted of the following as of December 31, 2013 and 2012:
December 31,
2013 2012
($ in millions)
Term loan due 2017 ......................................................................................... $ 2,000 $ 2,000
7.625% senior notes due 2013 ........................................................................ — 464
9.5% senior notes due 2015 ............................................................................ 1,265 1,265
3.25% senior notes due 2016 .......................................................................... 500 —
6.25% euro-denominated senior notes due 2017(a) .......................................... 473 454
6.5% senior notes due 2017 ............................................................................ 660 660
6.875% senior notes due 2018 ........................................................................ 97 474
7.25% senior notes due 2018 .......................................................................... 669 669
6.625% senior notes due 2019(b) ...................................................................... 650 650
6.775% senior notes due 2019 ........................................................................ — 1,300
6.625% senior notes due 2020 ........................................................................ 1,300 1,300
6.875% senior notes due 2020 ........................................................................ 500 500
6.125% senior notes due 2021 ........................................................................ 1,000 1,000
5.375% senior notes due 2021 ........................................................................ 700 —
5.75% senior notes due 2023 .......................................................................... 1,100 —
2.75% contingent convertible senior notes due 2035(c) .................................... 396 396
2.5% contingent convertible senior notes due 2037(c) ...................................... 1,168 1,168
2.25% contingent convertible senior notes due 2038(c) .................................... 347 347
Corporate revolving bank credit facility ............................................................ — —
Oilfield services revolving bank credit facility ................................................... 405 418
Discount on senior notes and term loan(d) ........................................................ (357) (465)
Interest rate derivatives(e) ................................................................................. 13 20
Total debt, net............................................................................................ 12,886 12,620
Less current maturities of long-term debt, net(f) ................................................ — (463)
Total long-term debt, net ........................................................................... $ 12,886 $ 12,157
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(a) The principal amount shown is based on the exchange rate of $1.3743 to €1.00 and $1.3193 to €1.00 as of
December 31, 2013 and 2012, respectively. See Note 11 for information on our related foreign currency derivatives.
(b) Issuers are Chesapeake Oilfield Operating, L.L.C. (COO), an indirect wholly owned subsidiary of the Company,
and Chesapeake Oilfield Finance, Inc. (COF), a wholly owned subsidiary of COO formed solely to facilitate the
offering of the 6.625% Senior Notes due 2019. COF is nominally capitalized and has no operations or revenues.
Chesapeake Energy Corporation is the issuer of all other senior notes and the contingent convertible senior notes.
(c) The holders of our contingent convertible senior notes may require us to repurchase, in cash, all or a portion of
their notes at 100% of the principal amount of the notes on any of four dates that are five, ten, fifteen and twenty
years before the maturity date. The notes are convertible, at the holder’s option, prior to maturity under certain
circumstances into cash and, if applicable, shares of our common stock using a net share settlement process.
One such triggering circumstance is when the price of our common stock exceeds a threshold amount during a
specified period in a fiscal quarter. Convertibility based on common stock price is measured quarterly. In the fourth
quarter of 2013, the price of our common stock was below the threshold level for each series of the contingent
convertible senior notes during the specified period and, as a result, the holders do not have the option to convert
their notes into cash and common stock in the first quarter of 2014 under this provision. The notes are also
convertible, at the holder’s option, during specified five-day periods if the trading price of the notes is below certain