Chesapeake Energy
One of the centerpieces of Chesapeake's debt restructuring plans is its new $1.5 billion bond issue. It has a maturity of 4.5 years, replacing an existing secured credit plan that it plans on paying back at 97% of its original value. It seeks a total of $2.34 billion in new debt with a maturity horizon somewhere around 2025. Many of these debts have an early exchange rate around 65-70%, the rate at which the bond is paid if it is paid before maturity, well below their issuance value, a reflection of the dire straits the company is in. However, with current bonds trading below 50 cents on the dollar for early exchange, this actually represents an improvement in the company's financial health.
Another issue with Chesapeake that looms on the horizon is the share price requirement to remain listed on the New York Stock Exchange. To keep trading on the NYSE, a company has to remain above $1.00. If it falls below $1.00, the company has six months to regain value, reverse split, or be delisted from the NYSE. Chesapeake now faces the great task of setting course before getting delisted.