Chesapeake Energy will issue floating-rate senior notes due 2019, and fixed-rate senior notes maturing in 2022 and 2026. The Oklahoma City-based company will use net proceeds from the record offering to repay an existing unsecured term loan, redeem is note due in 2018, and buy some of its notes due in 2015. The rest of the proceeds will be used for general corporate purposes.
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TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows: