Says Chesapeake, 'Yeah, And I'll Raise You $700 Million'

Just following up on Aubrey McClendon. On Monday, May 19, Chesapeake Energy (CHK) announced offerings of $1.2b in notes and convertibles. Tuesday, as announced, in addition to pricing the $800mm of 10 year notes, they also priced the $500mm of contingent convertible paper but then, presumably on the way to the bank, decided to change it to $1.2b.

Aw shucks....what the heh...we'll find somethin' to do with it!

Carizzo, Chesapeake, Range, Atlas, Equitable, and a few smaller operators have raised over $3.5 billion, mostly debt, in just the past 3 weeks and they've all mentioned the Marcellus shale play as one of the uses the cash.

Has the street has found the new subprime? Anybody seen Mozilo?

See the full CHK story here.

Disclosure: none

Comments

[Ozarker:]

I wouldn't second guess Mr. McClendon. You could have bought Chesapeake stock in February of 1999 for .75/share.

2008 May 22 09:56 AM

[20smoney:]

I sold part of my CHK position to raise cash...

my take: 20smoney.com/2008/05/2.../

2008 May 22 03:01 PM