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Subsequent Events
9 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
Subsequent Events
In October 2012, we sold our Delaware Basin assets in the Permian Basin to SWEPI LP, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.B), and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX) for net cash proceeds of approximately $2.715 billion. Payment of up to $466 million in remaining proceeds will be subject to certain title, environmental and other standard contingencies, and we expect to receive the majority of the remaining proceeds over the next eighteen months. We used the net proceeds received from these transactions to reduce the outstanding balance on our existing term loans. See Note 3 for further discussion of the term loan repayments.
In conjunction with these transactions, affiliates of Mr. McClendon also sold interests in the same properties that were acquired through the FWPP on the same terms as those that applied to the properties held by the Company. In addition, those affiliates will receive their proportionate share of the remaining proceeds as they are paid.
See Note 9 regarding the sale of our remaining interest in Glass Mountain Pipeline, LLC which occurred in October 2012. We used the net proceeds from the sale to reduce the outstanding balance on our existing term loans.
On November 9, 2012, we established an unsecured five-year term loan credit facility in an aggregate principal amount of $2.0 billion for net proceeds of $1.935 billion. Our obligations under the new facility rank equally with our outstanding senior notes and contingent convertible senior notes and are unconditionally guaranteed on a joint and several basis by our direct and indirect wholly owned subsidiaries that are subsidiary guarantors under the indentures for such notes. Amounts borrowed under the new facility, which priced at 98% of par, bear interest at LIBOR plus 4.5%. The LIBOR rate is subject to a floor of 1.25% per annum. The new facility is non-callable in the first year but may be voluntarily repaid in the second and third years at par plus a specified call premium and may be voluntarily repaid at any time thereafter at par. We used the net proceeds of the new term loan to fully repay the remaining outstanding borrowings under our existing term loans and to repay outstanding borrowings under the Company's corporate revolving bank credit facility.