Forest Oil Corporation (NYSE:FST) (Forest or the Company) announced today that it has commenced a cash tender offer to purchase up to $700 million aggregate principal amount of its 7.50% Senior Notes due 2020 (the “2020 Notes”) and its 7.25% Senior Notes due 2019 (the “2019 Notes” and, together with the 2020 Notes, the “Notes”), subject to purchase in accordance with the Acceptance Priority Level for each series of Notes and possible proration within the 2019 Notes as described in the Company’s Offer to Purchase dated November 7, 2013.
The offer will expire at 11:59 p.m., New York City time, on December 6, 2013 (as the same may be extended, the “Expiration Date”), unless earlier terminated. Holders who tender their Notes prior to 5:00 p.m., New York City time, on November 21, 2013 (as the same may be extended, the “Early Tender Date”), will be eligible to receive the total consideration shown in the table below, which includes the early tender premium. Holders who tender their Notes after the Early Tender Date and prior to the Expiration Date will be eligible to receive only the tender offer consideration shown in the table below, namely the total consideration less the early tender premium. In addition, holders whose Notes are purchased will receive accrued and unpaid interest from the last interest payment date to, but not including, the applicable settlement date.
Payment for all Notes tendered prior to the Early Tender Date and accepted for purchase may be made, at Forest’s option, on the Early Settlement Date, which, if it occurs, will be promptly after the Early Tender Date, provided all conditions to the offer have been satisfied or waived. Forest anticipates that the Early Settlement Date will occur on the same business day that it closes the pending sale of the Company’s oil and gas assets in the Texas Panhandle area or on the next business day. Payment for any tendered Notes accepted for purchase and not acquired by the Company on the Early Settlement Day will be made promptly following the Expiration Date.
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