On Monday , Chesapeake Energy Corp it planned to raise $5 billion by selling in assets and issuing debt and stock in a bid to pay down borrowings and increase its production levels. 20 percent of its Appalachia unit , which holds its Marcellus Shale operations , as well as try to sell stakes in its processing operations in an effort to pay down part of its senior debt , which totaled $10.4 billion at the end of 2009.

An analyst Argus Research Corp in New York, Philip Weiss said “On the fringes, maybe it’s a little bit better, but it doesn’t do a lot for me. They’ve been saying they’re going to get this investment-grade debt for a while”. Chesapeake said “It is planning to sell as much as a 20 percent stake in its Marcellus Shale subsidiary in the next three to 12 months. Maju Investments Ptd Ltd. and Hampton Asset Holding Ltd. have agreed to buy $600 million in the company’s preferred stock”. The company now plans to operate 50 rig programs in its liquids rich projects over the next year and said “We plan to enter into a joint venture on its Eagle Ford play in South Texas, where it has about 400,000 net acres”.

The shares rose less than 1 percent to $23.30 per share in extended trade after gaining 5.43 percent of convertible during the regular session and said it would repay some outstanding senior notes with the $600 million private placement of convertible preferred stock on Monday.