Chesapeake Energy Corp. (NYSE: CHK) announced Dec. 16 that it closed on a new five-year, $4 billion senior unsecured revolving credit facility.

The facility replaces the existing $4 billion senior secured revolving credit facility that was scheduled to mature in December 2015. The aggregate commitments may be increased up to an additional $1 billion, and the new credit agreement matures Dec. 15, 2019 with two one-year extension options, each of which is subject to lender approval and certain customary provisions.

Proceeds will be used for working capital and general corporate purposes.

The facility provides a significant amount of liquidity to Oklahoma City's Chesapeake while offering great optionality to take advantage of current market conditions, said Nick Dell'Osso, Chesapeake's CFO, in a statement.

“We are very pleased with the size and terms of our new credit facility, which is more flexible and has been structured to include investment grade-like terms, and allows Chesapeake to release nearly $6 billion of proved reserve-based collateral," he said.

He added, "The improved credit terms available to our company today, despite this time of significant market volatility, serve as recognition of Chesapeake’s greatly simplified balance sheet and dramatically improved operating and financial results."

MUFG Union Bank NA led the facility as administrative agent, co-syndication agent, swingline lender and a letter of credit issuer, and Wells Fargo Bank National Association led as co-syndication agent, swingline lender, and a letter of credit issuer.

Bank of America NA, Crédit Agricole Corporate and Investment Bank and JPMorgan Chase Bank NA are co-documentation agents and letter of credit issuers. MUFG Union Bank NA and Wells Fargo Securities LLC were joint lead arrangers and joint bookrunners.