Chesapeake Energy Offers $750 million in Notes as It Struggles in 2017

Oklahoma City-based Chesapeake Energy announced Monday the offering of up to $750 million in its outstanding senior notes as the company continued with its economic struggles.

The offering includes no more than $200 million of 6.625% Senior Notes due 2020 and 6.875% Senior Notes due 2020 and no more than $200 million of 6.125% Senior Notes due 2021. The offer also includes 5.375% Senior Notes due 2021.

The Ten Offers will expire 11:59 p.m. New York City time on June 19, 2017.

Citigroup Global Markets Inc. is acting as the dealer manager of the Tend Offers. Global Bondholder Services Corporation has been retained to serve as both the depositary and the information agent for the offers.

Shares in Chesapeake last traded at $5.86, an increase of 8 cents a share. Three years ago, company stock traded at more than $30 a share and plunged to $1.59 a share in early 2016. Analysts in February indicated the next two years for Chesapeake were about de-levering by 30 to 50% and that asset sales would likely be used to retire debt. Some said billions would be needed over the next year to 18 months to retire the debt.

 

It was a year ago when the company, beleaguered by the downturn secured a revolving credit facility agreement that helped the energy firm avoid bankruptcy. Since then, it has been the target of much speculation about what 2017 will bring.