Forbes Energy Services extends consent solicitation for 11% notes

By Angela McDaniels

Tacoma, Wash., July 20 - Forbes Energy Services Ltd. extended the consent solicitation for the 11% senior secured notes due 2015 issued by Forbes Energy Services LLC and Forbes Energy Capital Inc. to 4:30 p.m. ET on July 23 from July 20, according to a company news release.

Forbes Energy is looking to amend the indenture in order to allow it to issue up to $20 million of additional notes under the second-priority indenture.

The company is also seeking to remove from the definition of change of control a transaction that results in a person owning more voting stock than the company's three founders.

Forbes Energy said that following the amendment, the definition of a change of control would continue to include a transaction that results in a person owning more than 35% of the company's voting stock.

The company will pay a consent fee of $7.50 per $1,000 principal amount of notes.

Consents are needed from the holders of a majority of the notes.

The consent solicitation began July 6.

In order to permit the issuance of $20 million of additional notes, the company has entered into a supplemental indenture amending its first-priority floating-rate notes due 2014.

The company said in its financial report for the first quarter that it would require additional funding during the year in order to meet its working capital requirements, including the required repurchase of $6.6 million of the notes and interest payments.

Questions may be directed to the company at 361 664-0549. Wells Fargo Bank, NA (212 515-1589) is the 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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