Forbes Energy amends consent solicitation for 11% notes

By Susanna Moon

Chicago, Feb. 2 - Forbes Energy Services Ltd. said it is amending its consent solicitation for the $205 million of 11% senior secured notes due 2015 issued by two of its subsidiaries, Forbes Energy Services LLC and Forbes Energy Capital Inc.

The purpose of modifications to the proposed amendments is to make certain terms of the proposed amendments more favorable to noteholders, according to a company press release.

Forbes announced its consent solicitation on Jan. 22 to amend the note indenture and said it needed consents from holders of a majority of the outstanding notes not owned by the company or its affiliates.

The company said that rather than a consent fee, it would offer additional amendments to provide additional rights and benefits to the noteholders.

Forbes referred holders to the amendment to the statement dated Feb. 2 for more information on the changes.

The consent solicitation will expire at 4:30 p.m. ET on Feb. 4.

Forbes previously said the amendment will allow the company to remain in compliance with the capital expenditure covenant in the indenture for fiscal year 2008 and will allow it to make capital expenditures in subsequent years in amounts that are "consistent with its long-term business plan, prior planning and capital expenditure budgeting."

More specifically, the amendment will change the definition of net income to provide for the exclusion of some non-cash charges that, according to Forbes Energy Services, do not negatively impact the company's current cash flow or are extraordinary, unusual or non-recurring non-cash charges, but that have had and may have the effect of restricting the company's ability to make capital expenditures under the indenture.

Jefferies & Co. (203 708-5831) is the solicitation agent, and Wells Fargo Bank, NA (612 667-6245) is tabulation agent.

Forbes Energy Services is an Alice, Texas-based independent oilfield services company that provides drilling and production-related services to oil and natural gas companies.

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