Forest Oil Corporation (Forest or the Company) announced that it closed the previously announced sale of its properties in South Texas for net cash proceeds of approximately $307 million, after customary adjustments to reflect an effective date of January 1, 2013 and the hold-back of certain properties, valued at approximately $14 million, for which required consents-to-assign have not yet been obtained.
A subsequent closing on these hold-back properties is expected to occur within 90 days. The proceeds from this sale will be used to redeem the remaining $300 million principal amount outstanding of the Companyís 8.5% Senior Notes due 2014. In connection with the closing of this transaction, the global borrowing base under Forestís credit facilities has been reduced to $900 million.
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