Sabine Oil amends term loan forbearance for ‘additional flexibility’

By Wendy Van Sickle

Columbus, Ohio, July 9 – Sabine Oil & Gas Corp. signed an amendment Wednesday to the forbearance agreement under its second lien term loan facility that it says will provide “additional flexibility” as it continues to discuss debt and capital structure with its creditors, according to a news release.

Specifically, lenders will take no action against Sabine until the earlier of July 15, certain events of default or remedies by any other lender. The company agreed to tighten some financial covenants under the facility in exchange for the forbearance.

Sabine announced last week that its separate forbearance agreement with lenders under its revolving credit facility had also been extended until July 15.

As previously reported, the company has retained financial adviser Lazard and legal adviser Kirkland & Ellis LLP to advise management and the board of directors on strategic alternatives related to its capital structure.

The company held cash of $276.9 million as of May 8, which it said is enough to “fund its current operations.” It said it is continuing to pay suppliers and other trade creditors according to normal course.

“The company believes it is in the best interests of its stakeholders to actively address the company’s debt and capital structure and is continuing discussions with its creditors and their respective professionals,” the news release stated.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.