Chesapeake jumps on exchange, tender offers; PG&E down as victim settlement nears

By James McCandless

San Antonio, Dec. 4 – The distressed debt space continued to pay attention to newsmakers in the energy and utilities sectors on Wednesday.

Chesapeake Energy Corp.’s notes spiked higher after the company announced that it had started an exchange offer for five series of notes and a separate tender offer.

The 8% senior notes due 2025 gained 2¼ points to close at 54 bid. The 8% senior notes due 2027 jumped up 10 points to close at 58 bid.

Early Wednesday, the Oklahoma City-based independent oil and gas producer launched private offers of up to $1.5 billion of its new 11½% senior secured second-lien notes due 2025 in exchange for some of its outstanding senior notes, Prospect News reported.

To finance the offer, the company arranged a secured first-lien term loan facility with a group of commercial lenders.

Concurrently, the company also launched a tender offer on behalf of subsidiaries to purchase for cash any and all of the $617.81 million 6 7/8% senior notes due 2025.

Utilities name PG&E Corp.’s notes declined amid news that the company is close to striking a $13.5 billion payout for wildfire victims.

The 6.05% notes due 2034 dropped 1 point to close at 105 bid.

© 2015 Prospect News.
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