Forest Oil amends loan, modifying leverage covenant

By Sara Rosenberg

New York, March 16 - Forest Oil Corp. amended its credit facility, changing the leverage ratio, according to a news release.

Under the amendment, the leverage ratio is set at 4.50 to 1.00 for four consecutive fiscal quarters ending in 2009 and 2010, 4.00 to 1.00 for four consecutive fiscal quarters ending in 2011 and 3.50 to 1.00 for four consecutive fiscal quarters ending in 2012.

Prior to the amendment, the leverage ratio was not permitted to be greater than 3.50 to 1.00 for any four consecutive fiscal quarters.

In addition, the company's $1.62 billion borrowing base and $1.8 billion commitment amount were reaffirmed.

As of March 2, there was $853 million borrowed under the credit facility and $767 million of liquidity available to be drawn.

Forest Oil is a Denver-based company engaged in the acquisition, exploration, development and production of natural gas and liquids.

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