Chesapeake Energy notes down as reverse stock split planned; L Brands lower with outlook

By James McCandless

San Antonio, April 13 – More shifting ground in the energy and retail sectors marked the distressed debt market as a new week started.

Chesapeake Energy Corp.’s notes trailed as the company prepared for a reverse stock split, which was enacted after the close.

The 11½ senior notes due 2025 lost 2¼ points to close at 12¼ bid.

After the Thursday close, the Oklahoma City-based independent oil and gas producer announced that it would vote on a reverse stock split on Monday in order to meet New York Stock Exchange regulations.

The proposed range of the split was of one to 50 to one to 200 shares.

Late Monday, the board of directors voted for a one to 200 reverse stock split, taking effect at the end of Tuesday and with trading commencing on Wednesday.

The company’s shares outstanding will be reduced to 9.784 million shares.

Last month, the company hired restructuring advisers to tackle its $9 billion in debt.

In the retail space, L Brands, Inc.’s paper was pushed lower after a ratings agency changed its outlook of the name to negative.

The 6¾% senior notes due 2036 declined by 2¾ points to close at 77 bid. The 5¼% senior notes due 2028 weakened by 3 points to close at 72 bid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.