Chesapeake Wins Trial on Early Call of $1.3 Billion
May 8 (Bloomberg) --Chesapeake Energy Corp. (CHK) won a bid to save $100 million in interest payments by carrying out an early call of $1.3 billion in bonds at par after a judge ruled against the notes’ trustee, Bank of New York Mellon Corp.
Chesapeake, the second-biggest producer of natural gas in the U.S., met a March 15 deadline in the indenture contract to redeem the notes early at 100 cents on the dollar, U.S. District Judge Paul Engelmayer ruled today in Manhattan.
Chesapeake sued BNY Mellon in March after the bank challenged its bid to redeem the 6.775 percent notes six years early and refinance the debt -- a plan that will save the company about $100 million because of lower interest rates. The gas producer notified investors of the early call on March 15.
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