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Thursday, December 8, 2016

Chesapeake Energy Starting to Look Better to Investors; Company Also Reveals New Logo

From Seeking Alpha:
The terms of yesterday's $1 billion unsecured debt offering by Chesapeake Energy (NYSE:CHK) indicate that the credit market no longer views the recently troubled E&P operator as a distress risk. While the 8.00% coupon on the senior notes due 2025 with a standard unsecured high-yield structure is by no means low, it demonstrates investors' recognition that Chesapeake has come a long way addressing its liquidity challenges and reducing leverage to manageable levels. The offering was upsized. 
In combination with the $450 million in gross proceeds from the asset sale in the Haynesville announced two days ago, the note offering provides nearly sufficient amount of cash to fund the maximum amount under the tender offer for the existing notes that the company launched concurrently. 
The tender offer will be another major step by the company in terming out the nearest maturities. Even assuming the offer is undersubscribed, the remaining amount of debt coming due in 2017 and 2018 would be moderate and the remaining cash on hand can be used to defease the nearest maturities.
Read that whole article here.

Here is a portion of Chesapeake's press release announcing an offer to buy back $1.2 billion of debt:
Chesapeake Energy Corporation (NYSE: CHK) announced today that it has commenced cash tender offers (collectively, the "Tender Offers," and each offer to purchase a series of notes individually, a "Tender Offer") to purchase up to $1,200,000,000 aggregate purchase price, exclusive of accrued interest (the "Aggregate Maximum Purchase Amount"), of the outstanding notes of Chesapeake set forth in the table below (collectively, the "Notes").
Chesapeake Energy's new logo
Chesapeake Energy also has a new logo.  Here is what NewsOK has to say about it:
Chesapeake will begin using the new logo Jan. 3, but unveiled it at a meeting with employees this week. 
“Over the past three years Chesapeake has transformed all aspects of our business, and we plan on transitioning to a revised logo in January which is not tied to a specific commodity and reflects our focus on being an unconventional leader in our industry,” spokesman Gordon Pennoyer said in a statement. 
The new logo does away with Chesapeake's iconic blue natural gas flame and adds a green line that extends from the "h" and is designed to reflect a horizontal oil and natural gas well.
Click here to read that whole article. 

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