NEW YORK (TheStreet) -- Forest Oil (FST) stock is climbing Tuesday after Sabine Oil & Gas assured investors committed financing is in place for its acquisition of the company. Forest Oil tumbled a day earlier on reports Sabine had withdrawn an $850 million loan raised to fund the purchase.
"There was a report yesterday that the $850 million bridge financing facility was pulled - this is incorrect. The financing commitment required to consummate the transaction with Forest is still in place and unchanged," Sabine CEO David Sambrooks said in a statement.
"The proposed combination of our companies is moving ahead. All parties remain fully committed to this transaction and will continue to take the necessary steps to ensure it is consummated to the benefit of all shareholders."
By market open, Forest Oil shares had spiked 12.4% to $2.26. Over Monday's session, shares tumbled 17.6%.
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