- Chesapeake Energy (NASDAQ:CHK -4.6%) bonds plunge after the company announced an amendment to its existing $4B line of credit that would allow it to incur as much as $2B in junior debt.
- Under terms of the deal, CHK's existing credit line has become a secured credit facility, which can become unsecured again if the company meets certain conditions, which it does not disclose.
- CHK was able to extract some concessions from its lenders, such as the ability to incur new debt and the removal of the total leveraged ratio covenant.