Chesapeake Energy Gets $3B Line of Credit from 15 Banks

Chesapeake Energy “amended and restated” its “senior secured revolving credit facility” on Wednesday. What does that mean in everyday language? It means the company has talked a bunch of banks into allowing the company borrow up to $3 billion on a line of credit backed by the value of the company and its assets. That’s some kind of line of credit. The 15 banks doing the loaning were actually willing to pony up $3.8 billion, but Chessy only wants to use up to $3 billion. Aside from a huge line of credit, this news indicates that the banks have confidence that Chesapeake will be an ongoing concern for the foreseeable future. That is, no serious danger of bankruptcy, even though the company still maintains a mountain-high debt load. Below are the banks willing to roll the dice on Chesapeake…

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