The proceeds will be used to pay off debt, including senior notes due in 2018.

FORBES: IPO Watch: Dunkin' Donuts Tastiest Of 12 IPOs Next Week

Second, CHK is extending the average maturity schedule of its debt by replacing senior notes due to mature over the next six years with convertible preferred shares that come with no maturity date.

FORBES: Shareholders Get Drilled In Chesapeake Energy Recap

Furthermore, upon the occurence of certain events, the interest rate applicable to the Senior Notes may become 11.0% per annum and the redemption premium may begin to apply prior to the fifth anniversary of the Closing.

FORBES: McGraw-Hill Unloads Education Business for $2.5 Billion