Forest Completes Alaskan Subsidiary Financing
Forest Oil Corporation said Monday that Forest Alaska Operating LLC (Alaska), a new subsidiary of Forest, has completed its previously announced placement of $375 million of term loan financing to fund a $350 million distribution to Forest and provide initial working capital for its operations.
The $375 million term loan financing is comprised of a $250 million first lien facility with interest payable at Libor plus 350 basis points and a $125 million second lien facility with interest payable at Libor plus 650 basis points. The term loans are secured by Alaska's assets and are non-recourse to Forest. Forest intends to use the proceeds from the distribution to reduce its outstanding borrowings under its U.S. credit facility. Credit Suisse and JPMorgan were co-lead arrangers and joint bookrunners in the placement of the term loans.orp.
Forest Oil Corporation is engaged in the acquisition, exploration, development, and production of natural gas and liquids in North America and selected international locations. Forest's principal reserves and producing properties are located in the United States in Alaska, Louisiana, New Mexico, Oklahoma, Texas, Utah, Wyoming, and in Canada.
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