Oklahoma City’s financially challenged Chesapeake Energy Corp. has agreed to another deal to exchange its outstanding shares in exchange for debt, according to documents on file with the Securities Exchange Commission. The move is yet another effort as the company wrestles with billions in debt.
The filing, made Monday indicated the amount involved about 5 percent of the company’s outstanding shares and was the second such transaction in May.
With more than $9 billion debt, Chesapeake’s SEC filing indicated it issued or agreed to issue nearly 37.1 million shares between May 16 and May 23 in exchange for senior notes that have a value of an estimated $166 million. The notes are due in 2017, 2019, 2037 and 2038. The exact number traded was 37,080,17 shares of Common Stock and it represented 5.2% of the company’s outstanding Common Stock.
Chesapeake received $81.5 million of its 2.5% Contingent Convertible Senior Notes due 2037; $26.5 million of its .5% Senior Notes due 2017; $7.5 million of its 2.25% Contingent Convertible Senior Notes due 2038; and $50.5 million of its Floating Rate Senior Notes due 2019.
The swap followed one earlier in May that totaled $153 million in debt or about 4 percent of its equity.
