McClendon Wildcats for $1.4 Billion of Bonds: Corporate Finance
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Aubrey McClendon is returning to his wildcatter roots as the ousted co-founder of Chesapeake Energy Corp. prepares to tap the junk-bond market to help finance what will be the most highly leveraged energy exploration company.
A unit of McClendon’s American Energy Partners LP is seeking $1.4 billion, according to a statement from Moody’s Investors Service, which assigned the debt a Caa1 rating. That grade, denoting securities of “very high risk” and “poor credit standing,” reflects undeveloped reserves and “prospective” acreage in Permian Basin drilling rights being purchased from closely held Enduring Resources.