Drillbits

Says Chesapeake, "Yeah, And I'll Raise You $700 Million"

Just following up on Aubrey McClendon.......On Monday, May 19, Chesapeake Energy announced offerings of $1.2b in notes and convertibles. Yesterday, as announced, in addition to pricing the $800mm of 10 year notes, they also priced the $500mm of contingent convertible paper but then, presumably on the way to the bank, decided to change it to $1.2b. Aw shucks....what the heh...we'll find somethin' to do with it!

Carrizo, Chesapeake, Range, Atlas, Equitable, and a few smaller operators have raised over $3.5 billion, mostly debt, in just the past 3 weeks and they've all mentioned the Marcellus shale as one of the uses for the cash.

Has the street has found the new subprime? Anybody seen Mozillo?

Full Story at http://biz.yahoo.com/ap/080520/chesapeake_energy_financing.html?.v=1