Deals
Oil Firm That Cut a Deal With Apollo Braces for New Debt Squeeze
- Lightstream weighs bond deal as credit-line cut looms
- High-yield deals rare in resource sector mired in slump
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Just eight months after distressed-debt investors gave Lightstream Resources Ltd. a lifeline amid the worst oil-slump in a generation, the energy producer is warning investors it may need another.
The Calgary-based company is bracing for banks to cut its credit line after crude prices dropped to the lowest levels in more than a decade. With the bond market shut for the riskiest energy firms, that means it might need to work out yet another deal with distressed investors. A pair of funds run by Apollo Global Management LLC and Blackstone Group LP’s GSO Capital Management already agreed in July to exchange unsecured bonds for second-lien notes with a higher claim to the company’s assets, people with knowledge of the transaction said.