Wednesday, May 12, 2010

Chesapeake Energy (NYSE:CHK) Sells $600 Million in Convertible Preferred Stock

Chesapeake Energy (NYSE:CHK) announced today it has sold $600 million in convertible preferred stock to North America-based institutional investors.

With the goal of raising billions of dollars from investors, Chesapeakes next move should be to seek out Asian investors in Singapore and China, which the bulk of their strategy to raise money is focused.

The first part of the plan will take the money raised and pay down the debt of the company, said Chesapeake.

The dividend yield on the preferred bonds is 5.75 percnet with a liquidation preference of $1,000 a share.

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