Chesapeake Energy Corporation (CHK, quote) announced today it plans to offer $2.3 billion of senior notes in order to help fund a tender offer worth about $938 million in outstanding senior notes.

The senior notes will offered in 3 separate series totally up to 2.3 billion with maturing dates of 2016, 2021 and the final set for 2023.

Chesapeake also launched a tender offer today for 461.1 million for outstanding 7.625% senior notes maturing in 2013 and another 473.7 million for 6.875% with a maturing date in 2018.

Chesapeake said it also wants to redeem its 6.775% senior notes scheduled for 2019 but a group of hedge funds have said Chesapeake failed to provide proper notice to buy back the bonds and are asking for 30% premium worth about $400 million.

U.S. District Judge Paul Engelmayer, said last week Thursday, he refused to declare that Chesapeake could redeem bonds at face value. However, added it was "overwhelmingly clear" that Chesapeake cannot be forced to pay a premium in a game of "Gotcha."  Judge Engelmayer requested more information before ruling.

Bottom Line:  With a 37% run thus far this year alone a pull back on what seems will be fair solution based on the judges comments could be welcomed opportunity to add or initiate a position.