“We upgrade the senior notes to buy from hold based on cheap valuation,” because the company can overcome liquidity concerns, analysts at the bank led by Gregg Brody wrote in a research note dated May 2.
The cost to protect against losses on Chesapeake’s debt yesterday jumped to the highest since September 2009 as the second-largest U.S. natural-gas producer, which reported an unexpected first-quarter loss, said it may run out of money next year.
Chesapeake’s $1.3 billion of 6.775 percent senior unsecured notes due March 2019 fell 3.25 cents yesterday to 95.75 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
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