Chesapeake Energy Corp. | 4.50% Cumulative Convertible Preferred Stock (CHK.PRD)
Prospectus excerpt: We are offering 3,000,000 shares of 4.50% cumulative convertible preferred stock. The annual dividend on each share of preferred stock is $4.50 and is payable quarterly in cash, common stock or a combination thereof, in arrears, on each March 15, June 15, September 15 and December 15, commencing December 15, 2005. Each share of preferred stock has an initial liquidation preference of $100.00 per share and is convertible, at the holderĘs option at any time, initially into approximately 2.2639 shares of our common stock based on an initial conversion price of $44.172 per share, subject in each case to specified adjustments. The conversion price will be adjusted as described herein upon the occurrence of certain change of control transactions and other events. The preferred stock is not redeemable by us at any time. In the event that a fundamental change occurs, we will pay a make-whole premium on preferred stock converted in connection therewith, as described in this prospectus supplement. On or after September 15, 2010, if the closing price of our common stock exceeds 130% of the conversion price for 20 trading days during any consecutive 30 trading day period, we may at our option cause the preferred stock to be automatically converted into shares of common stock at the then prevailing conversion price.
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