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Forest Oil begins tender offer for $700 million of two note series
By Susanna Moon
Chicago, Nov. 7 - Forest Oil Corp. said it began a cash tender offer to purchase up to $700 million principal amount of two series of notes. It will run until 11:59 p.m. ET on Dec. 6.
The total purchase price for each $1,000 principal amount tendered by 5 p.m. ET on Nov. 21, the early tender date, includes a $30.00 premium as follows:
• $1,015 for the $500 million 7½% senior notes due 2020; and
• $1,027.67 for the $1 billion 7¼% senior notes due 2019.
The notes are listed in order of priority acceptance level.
Those who tender after the early tender deadline will receive per $1,000 par amount $985 for the 7½% notes and $997.67 for the 7¼% notes.
The company also will pay accrued interest to but excluding the settlement date.
Forest expects to settle early tendered notes on the same day that it closes the pending sale of the company's oil and gas assets in the Texas Panhandle area or on the next business day, according to a company press release.
Settlement for remaining tenders will occur promptly after the offer ends, the company said.
Tendered notes may be withdrawn by the early tender deadline.
The offer is not contingent upon the tender of any minimum principal amount of notes, but the offer is conditioned on closing of the pending sale of the oil and gas assets in the Texas Panhandle area.
Proceeds from the sale of the Texas Panhandle assets also will be used to reduce outstanding borrowings under its credit facility. As of Oct. 31, the company had outstanding borrowings of $136 million under its credit facility.
Wells Fargo Securities, LLC (866 309-6316 or collect at 704 410-4760), BofA Merrill Lynch (888 292-0070 or collect at 980 387-3907) and Citigroup Global Markets Inc. (800 558-3745 or collect at 212 723-6106) are the dealer managers. Georgeson Inc. (888 624-7035) is the information agent.
Forest Oil is a Denver-based oil and gas company.
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