Chesapeake Energy Considers 1.5 Lien Debt Exchange

From Reuters:
Chesapeake Energy Corp(CHK.N), an oil and gas company struggling in the commodities rout, is considering swapping out some of its existing debt for new 1.5 lien debt, according to CapitalStructure, a provider of news and analysis on the sub-investment grade space, citing sources close to the situation. 
Depending on credit agreements, companies can generally wedge 1.5 lien debt in between their first and second liens.

Chesapeake has not made any decisions on the swap yet, and the timing is uncertain, according to CapitalStructure, citing one of the sources. The swap is attractive, however, based on Chesapeake bonds' current pricing, CapitalStructure said, citing one of its sources. 
The company's bond maturing in 2017 were trading at around 70 cents on the dollar on Thursday, and its bonds maturing in 2018 at around 50 cents, according to Thomson Reuters data. Those levels are considered depressed.
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