Swift Energy Said Struggling to Raise Loan for Shoring Up Cash

Swift Energy Co. is struggling to find buyers for a $640 million loan that will boost liquidity at the oil and gas explorer amid a renewed plunge in oil prices, according to three people with knowledge of the matter.

Investors are demanding more than the 10.5 percent yield that’s being proposed on the five-year debt, said the people, who asked not to be identified because the information isn’t public. Oil prices have plunged 11 percent since a June 29 deadline for lenders to commit to the financing.

Doug Atkinson, a spokesman for Houston-based Swift, didn’t immediately return phone calls and respond to an e-mail seeking comment. Tasha Pelio, a spokeswoman for JPMorgan Chase & Co., the bank arranging the financing, didn’t immediately comment.

Swift also plans to use proceeds of the loan to repay its credit line, which will then be terminated, according to a June 23 report from Moody’s Investors Service. There was $247 million outstanding under the pact at the end of March, the report said. The borrowing limit on the credit line was cut to $375 million earlier this year from $417.6 million.

The loan would provide Swift with some financial certainty as its liquidity wouldn’t be subject to borrowing-base revisions, according to a June 29 Bloomberg Intelligence report.

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