Summary
Chesapeake Energy Corporation (the "Company") filed a Form 8-K on March 22, 2006, reporting the elimination of 99,126 shares of its 6.00% Cumulative Convertible Preferred Stock. This action was taken following the conversion of these shares into the Company's common stock. The conversion was initiated by both the voluntary conversion at the option of preferred stockholders and a mandatory conversion exercised by the Company. This move effectively retires a portion of the preferred stock and increases the outstanding shares of common stock.
Key Highlights
- 1Chesapeake Energy Corporation is retiring 99,126 shares of 6.00% Cumulative Convertible Preferred Stock.
- 2The retirement is a result of these preferred shares being converted into common stock.
- 3Both holder-initiated and company-initiated mandatory conversions occurred.
- 4The Certificate of Elimination was filed with the Oklahoma Secretary of State on March 21, 2006.
- 5The Company exercised its right for a mandatory conversion on March 20, 2006.
- 6A press release announcing the mandatory conversion was issued on March 17, 2006.
Frequently Asked Questions
The primary event is the elimination and retirement of 99,126 shares of Chesapeake Energy Corporation's 6.00% Cumulative Convertible Preferred Stock, which were converted into common stock.
The conversion occurred due to both voluntary conversions by preferred stockholders exercising their option and a mandatory conversion initiated by Chesapeake Energy Corporation as per the preferred stock's terms.
This event increases the number of outstanding shares of Chesapeake Energy's common stock, as the preferred shares have been converted into common shares. The retirement of preferred stock also simplifies the capital structure.
The Certificate of Elimination became effective on March 21, 2006. The Company exercised its right for a mandatory conversion on March 20, 2006, and the press release announcing this was dated March 17, 2006. The 8-K filing date is March 22, 2006.