Thursday, May 13, 2010

Chespeake Sells Even More Preferred Stock

Chesapeake Energy announced this morning that the company has sold yet another $500 million chunk of 5.75% preferred stock to some North American institutional investors.  This security is the same stuff that was sold yesterday to another group of North American investors but slightly different from the stock sold earlier this week to a pair of Asian investors.

By my count, this brings to $1.7 billion the preferred stock sold this week.  The company also noted that the 30 day option for the Asian investors to purchase more stock was increased from $500 million to $900 million.  If the Asians exercise the option, Chesapeake will have placed $2.6 billion of preferred stock.  That implies an annual preferred dividend of $149.5 million. 

No comments: