Forest Alaska to repay term loans using asset sale proceeds

By Sara Rosenberg

New York, May 29 - Forest Alaska Operating LLC plans on repaying its term loans using proceeds from the sale of Alaskan assets by parent company Forest Oil Corp., according to a news release.

Forest Oil is selling the assets to Pacific Energy Resources Ltd. for a consideration of about $464 million.

Of the total proceeds, about $380 million will be used to repay the Forest Alaska term loans, about $68 million will be paid to Forest Oil and about $16 million will be paid by Pacific issuing 5.5 million shares of its common stock to Forest Oil.

The transaction is expected to close on June 30, subject to customary closing conditions and adjustments.

Forest Alaska is a subsidiary of Forest Oil that was formed to hold oil and gas interests in the Cook Inlet region of Alaska.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.