Forest Oil to cut debt under facility with sale of oil and gas assets

By Susanna Moon

Chicago, Nov. 7 - Forest Oil Corp. said it plans to pay down some debt under its credit facility using proceeds of a pending sale of the oil and gas assets in the Texas Panhandle area.

As of Oct. 31, the company had outstanding borrowings of $136 million under its credit facility, according to a press release.

The company also will use proceeds to fund its cash tender offer for up to $700 million principal amount of two series of notes, which will run until 11:59 p.m. ET on Dec. 6.

Forest is tendering for its $500 million of 7½% senior notes due 2020 and its $1 billion of 7¼% senior notes due 2019. The notes are listed in order of priority acceptance level.

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

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