24 Aug 2016debt financing● NeutralMajor
Chesapeake borrowed $1.5 billion in a new second-lien term loan to fund tender offers for its unsecured notes, part of an ongoing effort to push out debt maturities and de-risk its balance sheet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
8 June 2016capital raising announcement▼ Bad
A third exchange round issued 22.0 million more shares for $125.3 million of notes, extending the pattern into a third consecutive month.
23 May 2016capital raising announcement▼ Bad
From 16 to 23 May 2016, a further round of exchanges issued about 37.1 million shares (roughly 5.2% of outstanding stock) for $166.0 million of senior notes.
12 May 2016capital raising announcement▼ BadMajor
Chesapeake began a debt-for-equity exchange program during the shale-gas downturn, issuing 28.1 million new shares (4.1% dilution) for $153 million face value of convertible and senior notes.
11 Apr 2016debt financing▼ BadMajor
Chesapeake amended its senior credit agreement, reaffirming a $4.0 billion borrowing base but deferring the next redetermination and suspending several leverage and interest-coverage covenants into 2017 - an early sign of balance-sheet strain during the 2015-16 gas price downturn.