By Colin Kellaher
Chesapeake Energy Corp. (CHK) on Tuesday said it agreed to issue about 250.7 million common shares to a large, unnamed investment manager in exchange for about $588 million in senior notes and preferred stock.
The Oklahoma City energy company said the move retires the securities at a significant discount and reduces its annual interest and preferred dividend payments by about $35 million.
Chesapeake said it may engage in similar transactions in the future as it works to pare its debt load.
Shares of Chesapeake rose 3.7% to $1.96 in Tuesday morning trading.
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