27 Dec 2019debt financing▼ BadMajor
Chesapeake amended its credit agreement again to accommodate the note exchange and raised $120 million from institutional investors, continuing to patch its balance sheet as the NYSE delisting clock ran.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
26 Dec 2019debt financing▼ BadMajor
Chesapeake exchanged existing unsecured notes for new 11.5% senior secured second-lien notes due 2025 - a distressed-debt exchange whose high coupon underscores how much the market's view of its credit risk had deteriorated.
13 Dec 2019listing compliance notice▼ BadMajor
The NYSE warned Chesapeake that its stock had traded below the $1.00 minimum average price for 30 straight days, starting a six-month clock to regain compliance or face delisting.
4 Dec 2019material agreement▼ BadMajor
Chesapeake tightened its credit agreement again - raising the interest margin, requiring at least $250 million of liquidity at all times, and swapping out a leverage covenant - signaling deepening balance-sheet stress heading into 2020.
19 Sept 2019capital raising announcement▼ Bad
Days later, Chesapeake exchanged another 68.6 million shares for $145 million more of senior notes, continuing the same last-ditch deleveraging push ahead of its 2020 bankruptcy.
10 Sept 2019capital raising announcement▼ BadMajor
In its largest exchange yet, Chesapeake issued 250.7 million new shares -- a massive dilution -- to a single large investment manager for nearly $588 million of preferred stock and senior/convertible notes, just months before its NYSE delisting notice and under a year before its Chapter 11 filing.
16 Apr 2019listing compliance notice● NeutralMajor
EXPAND ENERGY Corp's exchange filed to remove a class of its securities from listing.
5 Apr 2019debt financing● NeutralMajor
Chesapeake exchanged $918.5 million of its near-term 2020 and 2021 notes for new 8.00% notes due 2026, pushing out looming maturities as it continued managing a heavy debt load post-WildHorse.
1 Feb 2019asset acquisition disposition● NeutralMajor
Chesapeake completed its acquisition of WildHorse Resource Development, folding it into a subsidiary and immediately amending its credit facility to wall off the newly acquired Eagle Ford entity's debt as an "unrestricted subsidiary" -- oil-growth expansion financed with continued balance-sheet caution.
28 Jan 2019listing compliance notice● NeutralMajor
EXPAND ENERGY Corp's exchange filed to remove a class of its securities from listing.
19 Dec 2018business combination● Neutral
The amendment carried the first amendment to the merger agreement, signed 12 December 2018, which does one thing: it drops the threshold in the termination-fee provision from 25% to 20% so it matches the definition of a competing proposal for Chesapeake elsewhere in the agreement. It also set the voting timetable -- 24 December 2018 for Chesapeake holders, 11 January 2019 for WildHorse -- with proxy solicitation beginning before WildHorse's record date, and the tax opinions were delivered.
17 Dec 2018listing compliance notice● NeutralMajor
EXPAND ENERGY Corp's exchange filed to remove a class of its securities from listing.
5 Dec 2018business combination● NeutralMajor
Registration statement and joint proxy for Chesapeake's purchase of WildHorse Resource Development, its move into the Eagle Ford. WildHorse holders elect either 5.336 Chesapeake shares plus $3.00 cash or 5.989 shares outright, worth about $22.85 and $22.28 respectively when the deal was signed on October 29, 2018; Goldman Sachs advised Chesapeake, and Chesapeake owes a $120 million reverse break fee if it is the side that fails to close.
30 Oct 2018business combination● NeutralMajor
Chesapeake agreed to acquire WildHorse Resource Development, an Eagle Ford/Austin Chalk operator in Texas, in a stock-and-cash deal - a bet on adding oil-weighted growth using proceeds from its recent Utica sale, even as it takes on more shares and debt.
30 Oct 2018business combination▲ GoodMajor
Alongside strong third-quarter 2018 results (record cash flow, oil production up 13%), Chesapeake disclosed the same-day WildHorse Resource Development merger agreement to investors.
29 Oct 2018asset acquisition disposition▲ GoodMajor
The Utica Shale sale to Encino closed for about $1.868 billion in net cash, completing the divestment Chesapeake announced in July and freeing up proceeds to pay down debt.
27 Sept 2018debt financing● NeutralMajor
Chesapeake raised $1.25 billion in a public offering of new 7.00% notes due 2024 and 7.50% notes due 2026, continuing to refinance its debt load even as it kept a high-yield profile.
12 Sept 2018debt financing▲ GoodMajor
Chesapeake replaced its 2014 credit agreement with a new $3.0 billion facility (expandable to $4.0 billion) maturing in 2023, taking advantage of improved standing after the Utica sale and other debt paydowns.
26 July 2018material agreement▲ GoodMajor
Chesapeake agreed to sell its Ohio Utica Shale acreage - about 320,000 net acres and roughly 750 wells - to Encino Acquisition Partners for approximately $1.9 billion, part of a shift away from gas-heavy Utica toward its oil-focused Powder River Basin and Eagle Ford positions.
12 Oct 2017debt financing● NeutralMajor
Chesapeake issued another $300 million of its 2025 notes and $550 million of its 2027 notes, tapping the same series it had placed in late 2016 and mid-2017 to keep smoothing its debt maturity schedule.
24 July 2017listing compliance notice● NeutralMajor
EXPAND ENERGY Corp's exchange filed to remove a class of its securities from listing.
24 July 2017listing compliance notice● NeutralMajor
EXPAND ENERGY Corp's exchange filed to remove a class of its securities from listing.
7 June 2017debt financing● NeutralMajor
Chesapeake privately placed another $750 million of 8.00% senior notes, due 2027, extending its refinancing push further out on the maturity curve.
6 June 2017listing compliance notice● NeutralMajor
EXPAND ENERGY Corp's exchange filed to remove a class of its securities from listing.
22 May 2017debt financing● Neutral
Chesapeake amended its credit agreement to give itself more flexibility to refinance longer-dated junior debt after retiring most of its near-term maturities.
13 Feb 2017listing compliance notice● NeutralMajor
EXPAND ENERGY Corp's exchange filed to remove a class of its securities from listing.
20 Jan 2017capital raising announcement▼ Bad
Chesapeake exchanged 18.8 million new shares for three series of cumulative convertible preferred stock, continuing to dilute its way through legacy securities left from the downturn.
20 Dec 2016debt financing● NeutralMajor
Chesapeake privately placed $1.0 billion of new 8.00% senior notes due 2025, continuing its debt-refinancing campaign to manage a heavy near-term maturity wall.
5 Oct 2016capital raising announcement● NeutralMajor
Chesapeake raised $1.24 billion net by privately placing 5.5% convertible senior notes due 2026 through Goldman Sachs, using proceeds to pay down its revolver and near-term debt maturities.
24 Aug 2016debt financing● NeutralMajor
Chesapeake borrowed $1.5 billion in a new second-lien term loan to fund tender offers for its unsecured notes, part of an ongoing effort to push out debt maturities and de-risk its balance sheet.