Forest Alaska hit up Credit Suisse and JPMorgan last week to finance a $350 million dividend. The $375 million deal, launched last Thursday, consists of a $225 million term loan "B" and a $150 million second-lien term loan. Pricing could not be determined.
Forest Oil, the parent company of Forest Alaska, transferred the majority of its Alaska Business Unit to the new subsidiary Oct. 31. Forest Oil will now indirectly own 100% of the interests in Alaska, but the term loans will be secured by Alaska's assets. The credit will fund a $350 million dividend to Forest Oil, with the remainder to provide for working capital. Forest Oil was granted an amendment to its existing $600 million credit facility with JPMorgan on Oct. 31 for the transfer of the majority of the assets associated with its Alaskan business to Forest Alaska, according to a filing with the Securities and Exchange Commission. Calls to a company spokesman were not returned.