PCG - Why Chesapeake Energy PG&E and Kodiak Sciences Jumped Today
Major benchmarks rebounded on Wednesday, lifted by new hope that a preliminary deal on trade between the U.S. and China might still be possible in the short run. Market participants also got some readings that made them more optimistic about the prospects for continued economic growth across the economy. In addition, some companies had especially good news that lifted their shares substantially. Chesapeake Energy (NYSE: CHK), PG&E (NYSE: PCG), and Kodiak Sciences (NASDAQ: KOD) were among the top performers. Here's why they did so well.
Shares of Chesapeake Energy jumped 17% after the energy specialist announced that it's taking steps to refinance key parts of its outstanding debt. Chesapeake is working with multiple banks on a term loan facility for $1.5 billion, which it hopes to use to buy back notes and refinance debt of two of its subsidiaries. The energy company also negotiated amendments to existing debt that allow for greater flexibility in managing its debt load. Shareholders were happy with the progress, but Chesapeake really needs some help from the oil and natural gas markets in order to get its business truly healthy again.
Image source: Chesapeake Energy.