ADVFN - Advanced Financial Network.
HOME» NYSE » C » CHK Stock Price » CHK Stock News

Chesapeake Share News

 Chesapeake Energy Corp. Stock Price
CHK Stock Price
 Chesapeake Energy Corp. Stock Chart
CHK Stock Chart
 Chesapeake Energy Corp. Stock News
CHK Stock News
 Chesapeake Energy Corp. Company Information
CHK Company Information
 Chesapeake Energy Corp. Stock Trades
CHK Stock Trades

Chesapeake Increases Unsecured Loan To $4 Billion Amid Demand

By Matthieu Wirz, Angel Gonzalez and Melodie Warner Chesapeake Energy Corp. (CHK) has increased the size of its unsecured loan being sold to institutional investors to $4 billion from $3 billion amid strong investor demand, according to a source familiar with the matter. Goldman Sachs Bank USA (GS) and Jefferies Group Inc. (JEF) are syndicating the loan, which the oil and natural-gas producer will use to repay its secured revolving credit line. The news comes one day after Chesapeake executives, including Chief Executive Aubrey McClendon, told investors that the original loan, disclosed Friday, gave the embattled company enough liquidity to execute several planned asset sales "from a position of strength." Analysts, however, voiced continued concerns about the company's financial situation, and credit watchdog Standard & Poor's on Tuesday downgraded its ratings a notch to double-B-minus from double-B, a step further into junk territory. S&P also gave it a negative outlook to reflect the mounting turmoil the company faces, and the likelihood it will face "an even wider gap between its operating cash flow and planned capital expenditures than we had previously anticipated." Chesapeake shares, which rose on Monday after the executives' presentation, closed down 5.6% at $14.65 on Tuesday. Argus Research analyst Phil Weiss said Tuesday that Chesapeake's "near-term cash needs are growing," and "its spending levels are unsustainable and ill-advisable elevated." The new loan Chesapeake secured from Goldman Sachs and Jefferies will pay an 8.5% interest rate through December before stepping up to 11% in January, offering a steep premium to the company's bonds, which traded at a yield of around 7% prior to the announcement of the new financing. Disclosure of the loan's pricing prompted investors to sell out of the lower-yielding bonds and place orders for the new deal, said one hedge fund manager who hoped to buy a piece of the loan. Chesapeake's bond yields, which move in opposite direction to price, rose to more than 8% in trading Monday before falling back to a 7.5%-8% range Tuesday, according to MarketAxess. In a filing Monday with the Securities and Exchange Commission, the California Public Employees' Retirement System, which in mid-April owned about 1.8 million shares of Chesapeake stock, asked fellow shareholders to vote in the upcoming annual meeting for its proposal to eliminate the supermajority requirement needed to amend or adopt bylaws at the company. CalPERS cited concerns with compensation and transparency due to recent revelations about McLendon's borrowings to fund his participation in a controversial program where he owned a small stake in every well drilled by Chesapeake. "We are concerned with the apparent misalignment between shareowners and the company," it said. Chesapeake's annual shareholder meeting is scheduled for June 8. -By Matthieu Wirz, The Wall Street Journal, and Angel Gonzalez, Dow Jones Newswires; 713-547-9214;angel.gonzalez@dowjones.com -0-

Stock News for Chesapeake (CHK)
DateTimeHeadline
09/04/201507:00:00Chesapeake Energy Corporation to Present at Barclays CEO Energy-Power...
09/01/201513:49:00New Approach to Natural-Gas Could Keep Prices Low
08/24/201510:10:00Icahn Gets Board Seats From Cheniere
08/24/201509:59:00Icahn Gets Board Seats From Cheniere
08/21/201507:01:00Notice of Proposed Voluntary Dismissal of Derivative Action
08/11/201517:06:10Companies Pull Back on CEO 'Failure Parachutes'
08/06/201520:10:20Icahn Group Holds 8.18% of Cheniere
08/05/201510:00:19U.S. Hot Stocks: Hot Stocks to Watch
08/05/201509:30:07Chesapeake Energy Takes $4 Billion Write-Down Amid Weak Oil Prices
08/05/201509:14:32Chesapeake Energy Takes $4 Billion Write-Down Amid Weak Oil Prices
08/05/201507:01:00Chesapeake Energy Corporation Reports 2015 Second Quarter Financial...
07/28/201516:00:00Lonestar Announces Joint Development Agreement With IOG Capital
07/21/201510:20:08Chesapeake Energy to Drop Dividend
07/21/201510:05:56Chesapeake to Eliminate Dividend to Pay for Capital Spending
07/21/201507:01:00Chesapeake Energy Corporation Updates Financial Strategy
07/11/201510:30:03Why Chesapeake Energy, Clean Energy Fuels, and Legacy Reserves...
07/11/201507:11:033 Types of Risks Facing Natural Gas Stocks
07/10/201517:09:17Judge Orders Chesapeake to Pay $379.7 Million in Bond-Redemption...
06/12/201516:27:443 Stocks to Watch in Oil Rigs
06/05/201513:04:02How Energy Companies Are Raising Cash In A Pinch

Chesapeake Energy and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad