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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (56313)	12/3/2015 1:46:09 PM
From: Jurgis Bekepuris	Read Replies (1) of 79131

CHK notes and my comment in CoBF: finance.yahoo.com OKLAHOMA CITY, Dec. 2, 2015 /PRNewswire/ -- Chesapeake Energy Corporation (CHK) today announced the commencement of private offers of up to $1.5 billion aggregate principal amount (the "Maximum Exchange Amount") of its new 8.00% Senior Secured Second Lien Notes due 2022 (the "Second Lien Notes") in exchange for certain outstanding senior unsecured notes of the Company, upon the terms and subject to the conditions set forth in the Company's confidential offering memorandum and related letter of transmittal, each dated December 2, 2015. Yeah. That's what a bunch of companies do now. Both positive and negative. Positive that they push out the maturities, which benefits both equity and remaining notes (that they'd have to redeem/refi before 2022). Negative is that you have even senior (secured) notes in front of you if BK happens. Interest costs might be a wash (or even lower) depending on which notes are tendered. Also shows how the company values its notes right now. I have some unsecured 2020's. Not buying more. Probably not selling now either.

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