S&P: Chesapeake unchanged

Standard & Poor's said its ratings on Chesapeake Energy Corp. (BB-/positive/B-1) will not be affected by the company's announcement that it intends to issue 8 million common equity shares and $250 million of cumulative convertible preferred equity.

The company intends to use the net cash proceeds from the offerings to pay down outstanding revolver debt and/or for general corporate purposes, the agency noted.

Assuming all proceeds are used to pay down debt, Chesapeake's funded debt per thousand cubic feet equivalent of proved reserves is projected to decline by about $0.085 to $0.62, the agency said, noting this is consistent with its current rating.

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