In Energy, Temasek on 21/12/2015 at 2:17 pm
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.
In Energy, Temasek on 17/12/2013 at 4:39 am
Many moons ago TRE told us that Temasek owns bonds in Chesapeake that are convertible at US$27 (issued when stock was around 23-25). And that the bonds were deeply underwater: the shares went as low as below 15 (Sorry the TRE link no longer is working ’cause of TRE’s new system of trying to get money from stone) Related post: https://atans1.wordpress.com/2012/09/13/gd-news-for-temasek-on-chesapeake/
Well over a yr later, the shares closed yesterday at 26.79, having traded as high as 27.50 in recent months. Let’s see if TRE updates its story on Chesapeake. Suspect pigs will fly first. What say you Richard, TeamTRE?
There’s more. On 16 August, MediaCorp’s freesheet (ST Lite) reported: Temasek Holdings has sold its 4 per cent stake in Cheniere Energy after a surge in the share price of the United States natural gas importer, just 15 months after it unveiled the purchase as part of its “longer-term interest” in the energy sector.
The move is a sign of Temasek’s willingness as a self-professed “active investor” to realise profits. But it also comes after Temasek last year billed the stake as part of a broader plan to cooperate with Cheniere and US private equity group RRJ Capital to take advantage of the US shale gas revolution.
“The shares had a decent run over the past year,” said Mr Enrico Soddu, an analyst at the London-based Institutional Investor’s Sovereign Wealth Center. “Temasek just seized the opportunity to make a solid profit.”
Temasek sold 9.2 million Cheniere shares either directly or through affiliates in the second quarter, valuing the stake at US$257 million (S$326.2 million), according to a quarterly filing of its US stock holdings with the US Securities and Exchange Commission.
Shares in Cheniere had climbed as much as 200 per cent by the end of the second quarter after Temasek and RRJ announced in May last year they would spend about US$468 million on an equity investment in Cheniere.
Temasek and RRJ were to have formed a marketing company with Cheniere to sell liquefied natural gas (LNG) in Asia in a bet on rising shale gas production and exports to the region.
In Energy, Financial competency, Temasek on 13/09/2012 at 7:18 am
This investment has been problematic for Temasek https://atans1.wordpress.com/?s=Chesapeake
The shares closed at US$19.89. Temasek owns bonds that are convertible at US$27 (issued when stock was around 23-25).
It has many problems but the most pressing problem it spends more than it makes. It expects to spend roughly US$14bn on capital expenditure, acquisitions, interest, dividends and taxes this year, against about US$3bn in operating cash flow.
So it has to sell. This year, the company has reached agreements to sell US$11.6 bn worth of properties (including the ones reported below). It is aiming to raise a total of about US$13 bn to US$14 bn. S’poreans can only hope it succeeds.
The Chesapeake Energy Corporation said on Wednesday that it had agreed to a series of asset sales (US$6.9bn) as part of an effort to reduce its considerable debt burden.