Forest Oil plans $1.4 billion revolver for Houston Exploration purchase

By Sara Rosenberg

New York, Jan. 8 - Forest Oil Corp. is planning on getting a new $1.4 billion revolving credit facility to fund the cash portion of its acquisition of Houston Exploration Co., company officials said in a conference call Monday.

JPMorgan is the lead bank on the deal.

Initially, the company anticipates drawing down $849 million under the credit facility.

Then, later in the year, Forest Oil hopes to take out some of this debt in the capital markets, officials said in the call.

Under the purchase agreement, Forest is buying Houston in a stock and cash transaction totaling about $1.5 billion plus the assumption of net debt estimated to be $100 million at Dec. 31.

The transaction is expected to be completed in the second quarter subject to regulatory approvals and other customary conditions, as well as both Forest and Houston shareholder approval.

Forest is a Denver-based acquirer, explorer, developer and producer of natural gas and liquids. Houston Exploration is a Houston-based natural gas and crude oil producer.

© 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.