Chesapeake Energy eyed as term loan prices; Tenneco notes higher on private equity bid

By James McCandless

San Antonio, Dec. 10 – The distressed debt space saw more activity centered on energy and news-making names.

Chesapeake Energy Corp.’s notes varied in direction as the company prices a term loan and amended a cash tender offer.

The 8% senior notes due 2025 shed 1 point to close at 57 bid. The 8% senior notes due 2027 gained 1¾ points to close at 60 bid.

Early Tuesday, the Oklahoma City-based independent oil and gas producer announced the pricing of a $1.5 billion term loan that was launched earlier in the week.

As previously reported, the proceeds will fund a tender offer for unsecured notes issued by subsidiaries Brazos Valley Longhorn LLC and Brazos Valley Longhorn Finance Corp.

Concurrently, the company said that the tender consideration in the offer was increased to $950 per $1,000 principal amount of existing notes from $920 per $1,000 principal amount, Prospect News reported.

Meanwhile, Tenneco Inc.’s notes moved higher as the company receives a private equity bid for one of its segments.

The 5% senior notes due 2026 garnered 3 points to close at 90 bid.

News broke on Tuesday that the Lake Forest, Ill.-based automotive parts maker has received a $4.3 billion bid from private equity name Apollo Global Management for its powertrain segment.

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