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Thursday, October 13, 2016

Chesapeake Energy Continues Maneuvering in Efforts to Improve Cash Flow, Reduce Debt

From Reuters:
U.S. natural gas producer Chesapeake Energy Corp closed a private placement of $1.25 billion of debt on Wednesday, shoring up capital for debt repayment 10 months after it said it had no plans to file for bankruptcy. 
Chesapeake, struggling with a huge pile of debt taken for shale development, said it could convert the 10-year notes to equity in three years if its stock trades above 130 percent of the conversion price for a specified period. 
The company also said it exchanged its common shares for preferred shares representing about $1.2 billion of liquidation value, at a discount of over 40 percent.

"Through the transactions that closed today, we have substantially improved our capital structure," said Chesapeake Chief Executive Doug Lawler.
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