On Monday, shares of oil and gas producer Chesapeake Energy Corp (CHK - Free Report) are rising over 16% in late-day trading after the company confirmed its $4 billion line of credit.
According to Bloomberg, “Chesapeake amended a secured revolving credit agreement that matures in 2019 with lenders, who agreed to postpone the next evaluation until June 2017, [citing a statement made by the Oklahoma City-based company].”
“In exchange, Chesapeake pledged ‘substantially all of the company’s assets, including mortgages encumbering 90 percent of all the company’s proved oil and gas properties’ as collateral, according to a regulatory filing on Monday,” Bloomberg continued.
Chesapeake also promised all of its hedge contracts, property, deposit accounts, and securities in addition to almost all of its oil and gas reserves. The company will maintain minimum liquidity of $500 million.
Chesapeake currently holds a Zacks Rank #3 (Hold).
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