The second-largest U.S. natural gas producer, Chesapeake Energy Corporation (NYSE:CHK) [Detail Analytic Report] reported that it had issued or decided to issue about 4% of its outstanding shares in exchange for debt over previous week. Chesapeake reported that it issued or agreed to issue about 28.1 million shares among May 5 and May 11 in exchange for senior notes worth about $153 million. The notes are due in 2017, 2019, 2037, and 2038.
The firm reported in February that it had tapped legal firm Kirkland & Ellis for advice as it seeks to bolster its balance sheet to manage debt maturing in the next 18 to 24 months. Chesapeake has reported that it has no plans to seek bankruptcy protection, as some analysts and investors have speculated. Chief Financial Officer Nick Dell’Osso stated on May 5 that Chesapeake was considering use of additional secured debt, private transactions with bondholders and other types of exchange offers and open market purchases. The firm surprised investors previous month by keeping its $4B loan from banks even as many other oil and gas producers reported steep falls in credit limits.
A shareholder’s offer to put limits on the nomination process of CONSOL Energy Inc. (NYSE:CNX) [Detail Analytic Report] BOD passed at the Southpointe-based energy firm’s yearly meeting Wednesday, although another to need more transparency on its lobbying activities fell short. The offer would allow only a quarter of board to stand for election as shareholder-supported candidates on yearly proxy and make sure that a shareholder who nominates a board member hold at least 3% of Consol ordinary stock for at least three years.
Proxy access is becoming a bigger focus amidshareholders-rights activists and have been adopted by 100 companies in recent years, according to Laura Campos, director of shareholder activities at the New York-based Nathan Cummings Foundation. A second shareholder offer, as well put forth by Campos representing Nathan Cummings Foundation, was to require full disclosure of lobbying efforts and payments to non-Consol lobbying groups, which would include ones that write model legislation.
Gastar Exploration Inc. (NYSEMKT:GST) [Detail Analytic Report] released that it has priced a public offering of 50,000,000 shares of its ordinary stock at a price to the public of $0.95 per share pursuant to an effective shelf registration statement before filed with the Securities and Exchange Commission. The offering was upsized from the before reported offering of 40,000,000 shares of ordinary stock. Gastar has also granted the underwriters a 30-day option to purchase up to an additional 7,500,000 shares of ordinary stock.
Gastar aims to use net proceeds from offering for general corporate offers, comprising funding an expanded drilling program on its STACK Play acreage in Oklahoma. Gastar expects the offering to close on May 17, 2016, subject to customary closing conditions. Seaport Global Securities LLC and Johnson Rice & Firm L.L.C. are acting as joint book-running managers for the offering.