Summary
Chesapeake Energy Corporation (CHK) has filed an 8-K report detailing the mandatory conversion of its 5.00% Cumulative Convertible Preferred Stock (Series 2003). This action, effective November 20, 2006, involved the retirement of 38,615 shares of preferred stock which were automatically converted into common stock. The company also filed documents to eliminate the original certificate of designation for this preferred stock series from its charter. This conversion signifies a simplification of the company's capital structure by eliminating a class of preferred stock.
Key Highlights
- 1Chesapeake Energy Corporation completed the mandatory conversion of its 5.00% Cumulative Convertible Preferred Stock (Series 2003).
- 238,615 shares of the preferred stock were retired as a result of the mandatory conversion.
- 3The conversion was effective on November 20, 2006.
- 4The company filed a Certificate of Elimination with the Oklahoma Secretary of State to formally retire the preferred shares.
- 5Chesapeake Energy also filed to eliminate the Certificate of Designation for this preferred stock series from its Certificate of Incorporation.
- 6This move simplifies the company's capital structure by removing a class of preferred stock.
- 7The company issued a press release on November 17, 2006, announcing the upcoming mandatory conversion.