NEW YORK (TheStreet) — Shares of Chesapeake Energy (CHK) are advancing 7.08% to $3.93 in early-afternoon trading on Tuesday after announcing that it has issued or agreed to issue roughly 5% of its outstanding shares in exchange for debt during the past week.
The transaction is the second time this month that Chesapeake has swapped debt for equity as the oil and natural gas producer attempts to reduce its more than $9 billion in debt.
Chesapeake has issued or agreed to issue about 37.1 million shares between May 16 and May 23 in exchange for senior notes worth roughly $166 million, Reuters reports. The notes are due in 2017, 2019, 2037 and 2038.
Earlier this month, Chesapeake swapped $153 million of debt for about 4% of its equity.
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