Already struggling with share prices well below $1 and a delisting warning from the New York Stock Exchange, Chesapeake Energy corporate leaders saw their shares drop 14 cents last week.
Shares opened trading a week ago at $0.87 a share and managed a 3-cent increase by Tuesday but dropped to 83 cents on Wednesday and 79 cents on Thursday before slipping even further to 73 cents at Friday’s close. The six-cent drop on Friday was a decline of 7.02% with 64.7 million shares traded.
The continue slump in trading came as Chesapeake made a filing with the Securities and Exchange Commission offering another $45 million in notes. The company stated it was offering $45,861,000 of its 8.00% Senior notes due 2026.
It’s on top of an April 3, 2019 move when Chesapeake issued $918,514,000 of outstanding notes. That was followed on December 19, 2019, by an exchange of $872,653,000 of outstanding notes for the second lien notes.
Chesapeake’s delisting warning came nearly a month ago after it was found to be in noncompliance with NYSE standards, one that requires an average closing share of at least $1 over a consecutive 30-trading-day period.
Chesapeake issued a statement in mid-December saying it “intends to regain compliance with the NYSE listing standards by pursuing measures that are in the best interests of the Company and its shareholders.”
The “measures” included a 30% reduction in 2020 capital expenditures as well as continued debt reduction through asset sales.
On April 3, 2019 we issued $918,514,000 aggregate principal amount of the outstanding notes. On December 19, 2019, in a transaction exempt from or not subject to registration under the Securities Act, we exchanged $872,653,000 aggregate principal amount of the outstanding notes for the second lien notes.
The notes to be issued upon exchange of the outstanding notes (the “exchange notes”) will be our 8.00% Senior Notes due 2026, having terms that are identical in all material respects to the terms of the outstanding notes, except that (i) the transfer restrictions and registration rights applicable to the outstanding notes do not apply to the exchange notes and (ii) the exchange notes will not contain provisions relating to additional interest relating to our registration obligations.
We are offering to exchange up to $45,861,000 aggregate principal amount of our 8.00% Senior Notes due 2026 for an equal amount of our outstanding 8.00% Senior Notes due 2026 to satisfy our obligations under the registration rights agreement.
The exchange offer will expire at 5:00 p.m., New York City time, on , 2020, unless we decide to extend it.
Conditions to the Exchange Offer
We will not accept outstanding notes for exchange if the exchange offer or the making of any exchange by a holder of the outstanding notes would violate any applicable law or SEC policy. A minimum aggregate principal amount of outstanding notes being tendered is not a condition to the exchange offer. Please read “Exchange Offer—Conditions to the Exchange Offer” for more information about the conditions to the exchange offer.
We own a large and geographically diverse portfolio of onshore U.S. unconventional natural gas and liquids assets, including interests in approximately 13,900 oil and natural gas wells. We have leading positions in the liquids-rich resource plays of the Eagle Ford Shale in south Texas, the stacked play in the Powder River Basin in Wyoming and the Anadarko Basin in northwestern Oklahoma. Our natural gas resource plays are the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana