Ascent Resources Offers to Trade IOUs Due 2021 with IOUs Due 2021

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Last week Ascent Resources, which is formerly American Energy (Aubrey McClendon's company), targeting the Utica Shale, launched a note swap. Ascent is offering to exchange 3.50% Convertible Subordinated Notes due 2021 with two sets of new notes, another 3.50% Convertible Subordinated Notes due 2021 and incremental junior secured loans due 2019. We have no clue what it all means--perhaps a sharp MDN reader can elucidate for us? What it looks like to us is some sort of shell game, and in such games the dealer always comes out the winner. Note the phrase in the announcement below: "The New Convertible Notes are not and will not be listed on any securities exchange"...

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