Chesapeake Energy announced on Monday it is seeking a $1-billion loan as a step toward addressing its current $9-billion debt load.
Chesapeake hired Goldman Sachs Group, Citigroup, and Mitsubishi UFJ Financial Group to arrange the five-year secured debt. The energy company has commenced tender offers to buy back up to $500 million of its bonds, according Bloomberg.
Due to the market downturn, Chesapeake has been taking efforts to reduce all of its debt by way of cutting production, reducing jobs, and exchanging stock. The company’s CFO Domenic Dell’Osso said that Chesapeake’s “opportunities to enter the market are improving.”
Last week Chesapeake announced the sale of its Barnett shale holdings and renegotiated a pipeline contract with Williams, saving them more than $1.9 billion in future liabilities.