Did your financial advisor/broker recommend Forest Oil Senior Unsecured Notes? If so, you may have a claim for the sale of this high-risk debt.
Forest Oil Corporation (NYSE: FST) purchased up to $700 million aggregate principal amount of its 7.50% Senior Notes due 2020 and its 7.25% Senior Notes due 2019. The Notes are subject to purchase in accordance with the Acceptance Priority Level for each series of Notes and proration within the 2019 Notes as described in the Company’s Offer to Purchase, dated November 7, 2013.
According to information provided to Forest by the depositary for the Offer, approximately $277.9 million and $890.6 million in aggregate principal amount of the 2020 Notes and the 2019 Notes, respectively, had been tendered as of 5:00 p.m., New York City time, on November 21, 2013.
Forest Oil Corporation on March 5, 2014, was downgraded by Moody’s Investors. Moody’s downgraded Forest Oil Corporation’s corporate family rating to B3 from B2 and its senior unsecured notes rating to Caa1 from B3. “Drilling results in Forest’s Eagle Ford Shale are short of expectations, which we previously stated could be a catalyst for a downgrade,” commented Andrew Brooks, Moody’s Vice President. “The reallocation of capital away from the Eagle Ford will result in lower oil production than we had previously anticipated, leading to reduced cash flow and higher leverage. Lower projected EBITDA is expected to pressure the leverage covenant under Forest’s secured revolving credit facility, which will require relief from its banks.” Also, previously on February 28, 2014, Standard & Poor’s Ratings Services lowered its corporate credit rating on Forest Oil Corporation to B- from B+, its senior secured debt to B+ from BB and the Company’s senior unsecured notes to CCC from B-.
Wells Fargo Securities, LLC, B of A, Merrill Lynch, and Citigroup Global Markets Inc. were serving as the Dealer Managers for the Forest Oil Senior Unsecured Notes.
Recently, in 2017, Forest Oil notes have defaulted and if your stock broker recommended the Forest Oil notes and recommended that you to hold onto them through all of the downgrades, you may have a claims against your brokerage firm for selling you these potentially unsuitable investments.Forest Oil Senior Unsecured Notes cusip is 346091QZ4. Call Soreide Law Group to represent you at 888-760-6552. We handle cases nationwide through the Financial Industry Regulatory Authority and work on a contingency fee so if there is no recovery there is no fee. Call now or visit: https://www.SecuritiesLawyer.com