Forest Oil details $1.5 billion amended and restated credit facility

By Marisa Wong

Madison, Wis., July 6 - Forest Oil Corp. entered into a third amended and restated credit facility totaling $1.5 billion on June 30, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The facility matures in June 2016 and may be increased by $300 million to a total of $1.8 billion.

As of closing, no amounts were drawn.

The borrowing base is initially set at $1.25 billion and will be reset semiannually. If the company or any of its subsidiaries issue senior notes, the borrowing base will be reduced by an amount equal to 25% of the principal amount of those notes. The borrowing base will also be adjusted if the company sells oil and gas properties having a market value in excess of 10% of the borrowing base then in effect.

Borrowings under the credit facility will bear interest at Libor plus 150 bps to 250 bps depending on borrowing base usage.

J.P. Morgan Securities LLC was the lead arranger and bookrunner. JPMorgan Chase Bank, NA was the administrative agent. The co-syndication agents were BNP Paribas and Wells Fargo Bank, NA.

Forest Oil is a Denver-based oil and natural gas exploration company.

© 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.