UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
report (Date of earliest event reported): November
5, 2014
FOREST
OIL CORPORATION
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(Exact name of registrant as specified in its charter)
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New York
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(State or other jurisdiction of incorporation)
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1-13515
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25-0484900
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(Commission File Number)
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(IRS Employer Identification No.)
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707 17th Street, Suite 3600, Denver, Colorado
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80202
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(Address
of principal executive offices)
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(Zip
Code)
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303.812.1400
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(Registrant’s telephone number, including area code)
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 3.01.
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Notice of Delisting or Failure to Satisfy a Continued Listing
Rule or Standard; Transfer of Listing.
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As previously anticipated in the disclosures contained in the Current
Report on Form 8-K of Forest Oil Corporation (the “Company”) filed on
October 28, 2014 (the “Previous 8-K”), on November 5, 2014, the New York
Stock Exchange (“NYSE”) notified the Company’s outside legal counsel
that that the average closing price of the Company’s common stock had
fallen below $1.00 per share over a period of 30 consecutive trading
days, which is the minimum average share price for continued listing on
NYSE under Rule 802.01C of the NYSE Listed Company Manual. The Company
was unaware of the notice until December 4, 2014.
Under NYSE rules, the Company has six months following receipt of the
notification on November 5, 2014 to regain compliance with the minimum
share price requirement. The Company can regain compliance at any time
during the six-month cure period if the Company’s common stock has a
closing share price of at least $1.00 on the last trading day of any
calendar month during the period and also has an average closing share
price of at least $1.00 over the 30-trading day period ending on the
last trading day of that month or on the last day of the cure period.
The notice has no immediate impact on the listing of the Company’s
common stock, which will continue to trade on NYSE under the symbol
“FST”, nor does it have any impact on the Company’s credit facility or
other debt instruments. The Company intends to actively monitor the
closing bid price for its common stock and will consider available
options to resolve the deficiency and regain compliance with Rule
802.01C of the NYSE Listed Company Manual.
If the common stock ultimately were to be delisted for any reason, it
could negatively impact the Company by (i) reducing the liquidity and
market price of the Company’s common stock; (ii) reducing the number of
investors willing to hold or acquire the Company’s common stock, which
could negatively impact the Company’s ability to raise equity financing;
(iii) limiting the Company’s ability to use a registration statement to
offer and sell freely tradable securities, thereby preventing Forest
from accessing the public capital markets; and (iv) impairing Forest’s
ability to provide equity incentives to its employees.
As disclosed in the Previous 8-K, if the previously announced
combination transaction contemplated by the Amended and Restated Merger
Agreement, dated July 9, 2014, among the Company, Sabine Investor
Holdings LLC, Sabine Oil & Gas Holdings LLC, Sabine Oil & Gas Holdings
II LLC, Sabine Oil & Gas LLC and FR XI Onshore AIV, LLC (the
“Combination”) is completed, the Company intends to seek approval of an
amendment to the Company’s certificate of incorporation to cause a
reverse stock split of the Company’s common shares. The exact ratio of
the reverse stock split will be determined at the time the split is
implemented. The purpose of the reverse stock split is to allow the
combined company to meet the minimum price requirements under the NYSE
listing standards.
The Company intends to seek shareholder approval for the reverse stock
split concurrently with, and the reverse stock split would occur
concurrently with, the reincorporation merger described in Forest’s
definitive proxy statement dated October 20, 2014. If the Combination is
completed and the reverse stock split is not approved, or the minimum
public market value or other listing requirements are not met, the NYSE
is expected to delist the Company’s common stock following the
Combination.
As required under NYSE rules, the Company issued a press release on
December 9, 2014, announcing that it had received the notice of
noncompliance. A copy of this press release is attached as Exhibit 99.1
to this Form 8-K.
Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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Exhibit
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Description
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99.1
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Press Release.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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FOREST OIL CORPORATION
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(Registrant)
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Dated:
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December 9, 2014
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By
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/s/ Richard W. Schelin
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Richard W. Schelin
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Vice President, General Counsel
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and Secretary
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INDEX TO EXHIBITS FILED WITH THE CURRENT REPORT ON FORM 8-K
Exhibit
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Description
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99.1
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Press Release.
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Page 5
Exhibit 99.1
Forest
Oil Receives Continued Listing Standards Notice from the NYSE
DENVER--(BUSINESS WIRE)--December 9, 2014--Forest Oil Corporation
(NYSE:FST) (“Forest” or the “Company”) reported today that the New York
Stock Exchange (“NYSE”) notified the Company on November 5, 2014 that it
has not met the NYSE's continued listing standard that requires a
minimum average closing price of $1.00 per share over 30 consecutive
trading days.
Under NYSE rules, Forest has six months following receipt of the
notification to regain compliance with the minimum share price
requirement. The Company can regain compliance at any time during the
six-month cure period if the Company’s common stock has a closing share
price of at least $1.00 on the last trading day of any calendar month
during the period and also has an average closing share price of at
least $1.00 over the 30-trading day period ending on the last trading
day of that month or on the last day of the cure period.
The NYSE notification does not affect Forest's business operations or
its Securities and Exchange Commission reporting requirements, and does
not conflict with any of the company's credit agreements or debt and
other obligations. The notice has no immediate impact on the listing of
the Company’s common stock, which will continue to trade on NYSE under
the symbol “FST”. Forest previously announced that it intends to
undertake a reverse stock split following completion of its combination
transaction with Sabine Oil & Gas LLC in order to increase the trading
price of the Company’s common shares. Forest intends to formally notify
the NYSE promptly of its intent to take steps to cure the deficiency and
to return to compliance with this continued listing standard.
Forest Oil Corporation is engaged in the acquisition, production,
exploration, and development of natural gas and liquids in the United
States. Forest’s principal reserves and producing properties are located
in East Texas, the Eagle Ford in South Texas, Arkansas, and Louisiana.
Forest’s common stock trades on the New York Stock Exchange under the
symbol FST. For more information about Forest Oil, please visit its
website at http://www.forestoil.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements concerning the
proposed transactions, its financial and business impact, management’s
beliefs and objectives with respect thereto, and management’s current
expectations for future operating and financial performance, based on
assumptions currently believed to be valid. Forward-looking statements
are all statements other than statements of historical facts. The words
“anticipates,” “may,” “can,” “plans,” “believes,” “estimates,”
“expects,” “projects,” “intends,” “likely,” “will,” “should,” “to be,”
and any similar expressions or other words of similar meaning are
intended to identify those assertions as forward-looking statements. It
is uncertain whether the events anticipated will transpire, or if they
do occur what impact they will have on the results of operations and
financial condition of Forest Oil Corporation or Sabine Oil & Gas
LLC. These forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially from
those anticipated, including but not limited to the ability of the
parties to satisfy the conditions precedent and consummate the proposed
transactions, the timing of consummation of the proposed transactions,
the ability of the parties to secure regulatory approvals in a timely
manner or on the terms desired or anticipated, the ability of Forest Oil
Corporation to integrate the acquired operations, the ability to
implement the anticipated business plans following closing and achieve
anticipated benefits and savings, and the ability to realize
opportunities for growth. Other important economic, political,
regulatory, legal, technological, competitive and other uncertainties
are identified in the documents filed with the SEC by Forest Oil
Corporation from time to time, including Forest Oil Corporation’s Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K, including amendments to the foregoing. For
additional information on the risks and uncertainties that could impact
Sabine Oil & Gas LLC’s business and operations, as well as risks related
to the transactions, please see the definitive proxy statement filed by
Forest Oil Corporation. The forward-looking statements included in this
document are made only as of the date hereof. Neither Forest Oil
Corporation nor Sabine Oil & Gas LLC undertakes any obligation to update
the forward-looking statements included in this document to reflect
subsequent events or circumstances.
CONTACT:
FOR INVESTORS
Forest Oil Corporation
Larry C.
Busnardo, 303-812-1441
VP – Investor Relations
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