Forest Oil amends credit facility, sets borrowing base at $300 million

By Toni Weeks

San Luis Obispo, Calif., March 31 - Forest Oil Corp. amended its revolving credit facility as part of the regular semiannual redetermination of its borrowing base, according to a press release.

Following the redetermination, Forest Oil and its lenders agreed to amend the facility to provide for, among other things, an increase in the permitted maximum total debt to EBITDA ratio (leverage ratio) to 5.75:1.0 at the end of the calendar quarters ending March 31, June 30 and Sept. 30; 5.5:1.0 at the end of the calendar quarter ending Dec. 31, 2014, 5.25:1.0 at the end of the calendar quarter of March 31, 2015; 5.00:1.0 at the end of the calendar quarter of June 30, 2015; 4.75:1.0 at the end of the calendar quarter of Sept. 30, 2015; and 4.5:1.0 at the end of any calendar quarter ending after Sept. 30, 2015.

In connection with the amended leverage ratio, the company's borrowing base under the credit facility was reduced to $300 million.

There are no outstanding borrowings under the credit facility currently, the release noted.

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

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