Wonder if Temasek got out of Chespeake when the going was good in 2913?
Even in November of last yr its shares had hit $24 and, amazingly, the company’s credit rating rose to the cusp of investment grade.
But now the company’s shares have fallen below $4. FT reports: A liquidity crisis has forced it to pursue a debt exchange. Bondholders can swap their existing notes for a discounted set of notes that mature further in the future.
The new notes are of a higher priority in the capital structure, which will induce some creditors to take the discount. Morningstar estimates that the transaction will create a $1.7bn cushion that will keep Chesapeake afloat.
