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Chesapeake Energy Preferred Stock Offering

|Includes: Chesapeake Energy Corporation (CHK)
I noted an article today indicating the new Chesapeake Energy preferred stock offering was a great buy, but the average investor could not participate as it was a private placement.

Indeed, this is true, but please note CHK also has another Preferred, Cumulative and Convertible issue stock that trades openly. It's CHK-D.

CHK-D yields 4.5 percent on an initial offer price of $100. However, the stock currently trades at about $80 a share, so the effective yield is 5.6 percent. The issue can be exchanged by the shareholder for 2.2639 shares of CHK common stock, or redeemed by the Company for $100. It's relatively thinly-traded. Please check out all the terms and conditions. is a good source for data on preferred stocks.


Disclosure: Author is long CHK-D