March 11 (Bloomberg) -- Chesapeake Energy Corp.’s bonds fell by the most in almost eight months after the oil and natural gas producer sued trustee Bank of New York Mellon Corp. to redeem $1.3 billion of debt early and avoid new interest.
The company’s $1.3 billion of 6.775 percent notes due March 15, 2019, dropped 1.25 cents to 104 cents on the dollar to yield 5.97 percent as of 9:46 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The securities fell 2.5 cents July 16.
Chesapeake, which sued the trustee in Manhattan federal court on March 8, is asking a judge to confirm that a notice issued on or before March 15 will allow it to redeem those notes at par, or 100 cents, the Oklahoma City-based company said in a statement.
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