Chesapeake Energy bond payout raised to $438.7 million
Reuters
Published Jul 16, 2015 05:07PM ET
Chesapeake Energy bond payout raised to $438.7 million
NEW YORK (Reuters) - A federal judge on Thursday said Chesapeake Energy Corp (N:CHK) must pay an additional $59.1 million to some investors whose bonds it redeemed early, boosting the natural gas company's total payout to $438.7 million.
U.S. District Judge Paul Engelmayer in Manhattan said the new payment reflects prejudgment interest at a 6.775 percent annual rate.
Engelmayer had ruled on July 10 that Chesapeake should pay nearly $379.7 million plus the interest to holders of its $1.3 billion of 6.775 percent notes maturing in 2019.
The judge ruled after a federal appeals court last November said Chesapeake had waited one month too long to tell investors it planned to redeem the notes six years early.
Bank of New York Mellon Corp (N:BK) was the trustee for the bondholders. It had argued that Oklahoma City-based Chesapeake should pay a special, higher price because of the redemption.
Chesapeake intended to redeem the bonds early to reduce a debt burden accumulated under former Chief Executive Aubrey McClendon, and offset falling natural gas prices.
The case is Chesapeake Energy Corp v. Bank of New York Mellon Trust Co, U.S. District Court, Southern District of New York, No. 13-01582.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.