Chesapeake Energy lower as oil futures crash; Bombardier rises as production ramps up

By James McCandless

San Antonio, April 20 – The distressed debt market was dominated by energy names as oil futures sank to a record low.

Chesapeake Energy Corp.’s notes shifted lower as the company suspended its dividend and oil futures hit negative levels.

The 7˝% senior notes due 2026 lost 4 points to close at 4˝ bid. The 11˝% notes due 2025 trailed by 2 points to close at 7˝ bid.

After the close on Friday, the Oklahoma City-based independent oil and gas producer announced that it would suspend its dividends on all series of its convertible preferred stock, effective immediately.

The company stressed that the move did not constitute a default.

Also last week, shareholders and the board of directors approved a one-to-200 reverse stock split in order to regain New York Stock Exchange compliance.

After the split was finalized last Wednesday, the company’s common stock experienced a sell-off.

Meanwhile, aerospace name Bombardier Inc.’s notes rose as the company works to revamp production in its temporarily closed facilities.

The 7 7/8% senior notes due 2027 garnered 1˝ points to close at 70 bid. The 6% senior notes due 2022 picked up 2 points to close at 78˝ bid.

During the Monday session, reports indicated that the Montreal-based aerospace manufacturer is planning to gradually revamp production in its facilities.

© 2015 Prospect News.
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