Chesapeake Energy's stock drops in active trade after convertible debt offering
Shares of Chesapeake Energy Corp. slumped 4.2% in active premarket trade Thursday, after the oil and natural gas company announced the launch of a private placement of $850 million worth of convertible debt. Volume was 1.7 million shares, making the stock the most actively traded ahead of the open. The company plans to use the proceeds from the offering for general corporate purposes, including paying down debt and the repayment of credit facilities. The senior debt, due 2026, will be convertible into cash, common stock or a combination of both. The stock had soared 50% year to date through Wednesday, while the SPDR Energy Select Sector ETF has climbed 16% and the S&P 500 has gained 6.2%.
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