OREANDA-NEWS. May 15, 2013. Chesapeake Energy Corporation (NYSE:CHK) today announced that the United States District Court for the Southern District of New York has ruled in Chesapeake’s favor, enabling the company to redeem its USD1.3 billion of 6.775% Senior Notes due 2019 (the “Notes”) at par pursuant to the Special Early Redemption provision of the Notes.

Following a bench trial, the Hon. Paul A. Engelmayer ruled that Chesapeake’s notice to redeem the Notes at par, which was provided on March 15, 2013, was timely and effective pursuant to the Special Early Redemption provision of the Notes. The company initiated this legal action on March 8, 2013 against the trustee for the Notes, The Bank of New York Mellon Trust Company, N.A., to confirm Chesapeake’s right to redeem the Notes at par.

Accordingly, the company will proceed with its Special Early Redemption of the Notes, with payment expected to be made on May 13, 2013 pursuant to the terms of the notice. The company intends to proceed with the Special Early Redemption even if the trustee appeals the Court’s ruling, unless the Court’s ruling is stayed. Chesapeake’s redemption of the Notes is part of a broader refinancing of its outstanding debt obligations.

Domenic J. Dell’Osso, Jr., Chesapeake’s Chief Financial Officer, commented, “We are pleased that the Court has ruled in Chesapeake’s favor. We expect the refinancing of the Notes to save the Company more than USD100 million in interest payments.”