Chesapeake Energy notes lower amid ratings upgrade; WeWork down after Q4 pullback

By James McCandless

San Antonio, Jan. 17 – As the week came to a close, the distressed debt market extended its attention on the newsmakers of recent days.

Chesapeake Energy Corp.’s notes were seen heading lower amid a ratings upgrade that the company received on Friday.

The 11½% notes due 2025 shifted down 3¼ points to close at 87¾ bid. The 7% senior notes due 2024 lost 1½ points to close at 60 bid.

The losses came despite the Oklahoma City-based independent oil and gas producer receiving a ratings upgrade from S&P Global Ratings on Friday.

The agency raised its overall rating to CCC from SD, citing the company’s recently completed debt exchange of $3.22 billion principal of senior unsecured debt.

S&P said that the change reflects its view that there is a possibility for additional “distressed exchanges” over the next 12 months, affirming a negative outlook.

Real estate startup WeWork Cos. Inc.’s notes were under pressure after reporting a significant drop in leasing activity in the fourth quarter.

The 7 7/8% senior notes due 2025 declined by ¼ point to close at 79¼ bid.

News broke on Thursday that during the fourth quarter, the New York-based coworking name oversaw a significant drawback in leasing activity.

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