Chesapeake Arranges $1.5B Loan to Pay Off Old Debt, Stock Soars

In an impressive feat of financial jiu-jitsu, Chesapeake Energy has just snapped closed the mouths of those who said the company was imminently heading for bankruptcy following the company’s third quarter update (see Chesapeake Energy 3Q – Slash Drilling 30%, Bankruptcy Possible). Yesterday Chessy issued three press releases to announce it has swapped out some of its old debt for 70 cents on the dollar, and has arranged a 4 1/2 year loan for $1.5 billion. Chesapeake stock soared 17% higher on the news.

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