Forest Oil Bonds Rise After Shareholders Approve MergerJodi Xu Klein
Forest Oil Corp. bonds jumped to the highest level in three months after its shareholders approved a merger with First Reserve Corp.’s Sabine Oil & Gas LLC.
The natural gas and oil producer’s $577.9 million of 7.25 percent notes maturing June 2019 jumped 2.9 cents to 98.6 cents on the dollar at 1:01 p.m. in New York to yield 7.61 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That would be the highest closing level since Aug. 11.
Shareholders approved of the takeover after Forest Oil adopted a plan in July that would prevent investors with short positions from trying to “negatively influence” the prospective merger, according to a July 10 statement. The acquisition is expected to close in December.
Shares traded up 3.6 percent to 99 cents at 1:25 p.m. in New York. The stock is down about 73 percent this year.