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Chesapeake Energy (CHK +1%) bonds fall by the most in nearly eight months after the company...

Chesapeake Energy (CHK +1%) bonds fall by the most in nearly eight months after the company filed suit against trustee Bank of New York Mellon (BK) to redeem $1.3B in notes early and avoid new interest. CHK, which had $12B in long-term liabilities at year-end, says its move is "part of a broader refinancing of its outstanding debt obligations."
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Comments (7)
  • dkap
    , contributor
    Comment (1) | Send Message
     
    I am holding CHK...anyone have thoughts on what is going on with them? Restructuring/housecle... going on...an omen of good things to come or a mad scramble to get their house of cards more balanced before it falls down?
    11 Mar 2013, 01:21 PM Reply Like
  • wiley 66
    , contributor
    Comments (25) | Send Message
     
    I'm also holding. According to some the shock is the rise of $26 - $27 a share this year. Hope this is right??? Maybe they'll merge!
    11 Mar 2013, 02:49 PM Reply Like
  • thepapermaker
    , contributor
    Comments (2) | Send Message
     
    I'm holding out for a buy-out...
    11 Mar 2013, 04:20 PM Reply Like
  • mako26
    , contributor
    Comments (244) | Send Message
     
    i think im out at 22.50 -23 its been a battle from 17.41 these clowns are a mess
    11 Mar 2013, 06:58 PM Reply Like
  • jerryf01
    , contributor
    Comments (45) | Send Message
     
    I jumped from the frying pan into the fire also, moved from the stock to the options, not sure if that was the right move, but cheaper to play anyway.
    11 Mar 2013, 09:23 PM Reply Like
  • agrothberg
    , contributor
    Comments (2) | Send Message
     
    Another article (http://buswk.co/13SQjHt) says:

     

    ‘Sloppy’ Language
    Investors began pushing up the price of Chesapeake’s 2019 notes last month to take advantage of “sloppy” language in the deal documents, according to Covenant Review’s Cohen. Those securities rose above par even though the bond covenant has a redemption provision based on a March 15 date. The debt has since declined to 103.5 cents.

     

    Some traders believe that the company is wrong that it can redeem the notes at par and that Chesapeake would have to pay a substantial premium if it wanted to repurchase them, Cohen said. If a so-called make-whole call provision were triggered, the company would have to pay bondholders as much $400 million in addition to the principal amount of the notes.

     

    I found the final prospectus here: http://1.usa.gov/Zhva3R

     

    what in there is the "sloppy" language?
    12 Mar 2013, 01:15 AM Reply Like
  • agrothberg
    , contributor
    Comments (2) | Send Message
     
    Looks like Matt Levine over at Dealbreaker did a great write-up: http://bit.ly/16rd98o
    13 Mar 2013, 05:44 AM Reply Like
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