Sabine Oil to use grace period for April 21 credit agreement payment

By Caroline Salls

Pittsburgh, April 21 – Sabine Oil & Gas Corp. will exercise its right to a grace period in connection with the $15.31 million interest payment due April 21 under its second-lien credit agreement, according to a news release.

Under the grace period, the company has 30 days to make the payment before an event of default occurs.

As previously reported, Sabine hired financial and legal advisers to advise management and the board of directors on strategic alternatives related to its capital structure.

The company said it believes it is in the best interests of its stakeholders to actively address its debt and capital structure. Sabine said it intends to continue discussions with its creditors and their respective professionals during the 30-day grace period.

As of April 20, the company had a cash balance of roughly $280 million, which Sabine said provides substantial liquidity to fund its current operations.

In addition, the company said suppliers and other trade creditors are being paid in the ordinary course of business.

Formerly Forest Oil Corp., Sabine is an oil and gas company based in Houston.

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