Shares of Oklahoma City-based Chesapeake Energy (CHK) are moving higher after the company announced it is working with banks to arrange for a $1B line of credit to help ease its debt burden.
WHAT'S NEW:The natural gas producer said this morning that it has engaged Goldman Sachs, Citigroup and MUFG to arrange for a secured five-year term loan in an aggregate principal amount of $1B. Chesapeake said it intends to use the net proceeds of the loan to finance tender offers for certain of its unsecured notes. Chesapeake is looking to buy back $500M of contingent convertible senior notes and $500M of non-convertible senior notes due. "Chesapeake expects this financing and the tender offers to improve its financial flexibility as it will allow for the retirement of existing debt with upcoming maturities," the company said in a statement.
PRICE ACTION: Shares of Chesapeake Energy are up 3.6% to $5.19 in morning trading.
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