Chesapeake Pledges Almost Entire Company as Debt Collateral – Bloomberg

Chesapeake Energy Corp. pledged almost all of its natural gas fields, real estate and derivatives contracts to maintain access to a $4 billion line of credit as the shale gas producer grapples with falling energy prices. The stock was the top performer in the Standard & Poor’s 500 Index.Chesapeake amended a secured revolving credit agreement that matures in 2019 with lenders, who agreed to postpone the next evaluation until June 2017, the Oklahoma City-based company said in a statement Monday. Such reassessments normally occur twice a year. In exchange, Chesapeake pledged “substantially all of the company’s assets, including mortgages encumbering 90 percent of all the company’s proved oil and gas properties” as collateral, according to a regulatory filing on Monday.

Source: Chesapeake Pledges Almost Entire Company as Debt Collateral – Bloomberg

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