Forest Oil Corporation (FST) announced that it intends to commence a private offering to eligible purchasers, subject to market and other conditions, of $300 million in aggregate principal amount of senior unsecured notes due 2020. The Senior Notes will be guaranteed by Forest Oil Permian Corporation, a subsidiary of Forest.
Forest intends to use the net proceeds from the offering, together with borrowings under its bank credit facility, to fund a proposed redemption of 50% of the aggregate principal amount of its outstanding 8.5% Senior Notes due 2014. The principal amount outstanding of the 2014 Notes is $600 million.
The Senior Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance upon Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in transactions outside the United States in reliance upon Regulation S under the Securities Act.
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