Chesapeake swaps $169.58 million convertible preferreds for stock

New York, Sept. 29 – Chesapeake Energy Corp. agreed to exchange a total of $169.58 million of its 5.75% cumulative convertible preferred stock for common stock.

The company will issue 6,670,906 shares plus $50,874,600 of shares in exchange for 125,319 shares of its 5.75% cumulative convertible preferred stock and 44,263 shares of its 5.75% series A cumulative convertible preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

A volume-weighted trading price over a future period will be used to calculate the number of shares to be issued for the dollar amount of stock to be paid.

Chesapeake entered into the privately negotiated agreements on Thursday.

Chesapeake is an Oklahoma City-based oil and gas company.

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