Sabine Bonds Plunge as Forest Oil Purchase Weighs on Results
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Bonds of Sabine Oil & Gas Corp. plummeted after the company hired Lazard Ltd. and Kirkland & Ellis LLP to review its capital structure, less than a year after making an acquisition amid rising oil prices that have since slumped to a six-year low.
Sabine’s $578 million of 7.25 notes maturing in June 2019 dropped 8.7 cents to 16 cents on the dollar at 12:30 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The Houston-based driller owned by private-equity firm First Reserve Corp. also said it won’t file its full-year financial results on time, according to a statement.