Chesapeake exchanges $54.32 million 4.125% preferreds, $13.68 million 5% preferreds for stock

By Jennifer Chiou

New York, Aug. 16 - Chesapeake Energy Corp. said it has agreed to exchange $54.323 million of its 4.125% cumulative convertible preferred stock and $13.682 million of its 5.0% cumulative convertible series 2003 preferred stock for common stock.

The company announced it issued 1,948,342 common shares in exchange for 30,500 shares of its 4.125% preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The 30,500 shares represent $30.5 million or 13.0% of the outstanding liquidation value of the 4.125% preferreds.

On Aug. 11, the Oklahoma City company agreed to issue 718,983 shares in exchange for 11,265 shares of the 4.125% preferred stock. The preferred shares made up $11,265,000 or 5.5% of the outstanding liquidation value of the 4.125% preferred stock.

On Aug. 12, the oil and natural gas company agreed to issue 801,296 shares in exchange for 12,558 shares of the 4.125% preferreds. The 12,558 shares - to be retired on receipt - represented $12,558,000 or 6.5% of the liquidation value of the 4.125% preferred stock.

On Aug. 11, Chesapeake agreed to issue 862,735 shares in exchange for 136,820 shares of its 5.0% cumulative convertible series 2003 preferred stock. The preferreds made up $13,682,000 or 7.9% of the series 2003 preferreds.

All the transactions were unsolicited, Chesapeake Energy said.

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