Chesapeake Energy oilfield services spin-off approved by board - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Chesapeake Energy oilfield services spin-off approved by board

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The Chesapeake Board of Directors has approved the spin-off of Chesapeake Energy Corporation’s oilfield services business into a stand-alone, publicly traded company called Seventy Seven Energy Inc.

The company made the announcement June 9 that the two companies will be separated through the distribution of Seventy Seven Energy common stock to holders of Chesapeake common stock on a pro rata basis. Once all the closing conditions are met, the company expects distribution to take place after June 30.

SSE will be an independent, publicly traded company and Chesapeake will retain no equity interest, according to the company.

And information statement will be mailed to all Chesapeake shareholders entitled to receive the distribution of SSE common stock. SSE’s capital structure is expected to be made up of a new senior secured term loan, a new asset-backed lending facility, existing senior notes due in 2019 and, subject to market conditions, new senior notes due 2022.

Jerry L. Winchester and Cary D. Baetz will remain as chief executive officer and chief financial officer of SSE once the spin-off is complete.

Chesapeake Energy Corporation is headquarters in Oklahoma City. The company is the second-largest producer of natural gas and the 10th largest producer of oil and natural gas liquids in the U.S.