Poor Market Condition Forces Swift Energy Company (NYSE:SFY) To Pull Loan Deal


Dallas, Texas 07/17/2015 (Financialstrend) – Swift Energy Company (NYSE:SFY) has pulled a $640 million loan offering having struggled to find buyers for the same. Bloomberg had initially reported that the company was struggling to find buyers for the loan facility because of the current poor market conditions, especially in the energy sector. There were reports that the company had hit a snag on its push for the loan on investors demanding more than 10.5% in yields on the proposed five-year debt.

Reliance on Credit Lines

The oil and gas company planned to use the funds from the loan facility to pay down its existing credit facility as its liquidity levels come under pressure. A potential deal was thrown into further disarray when oil prices dropped by 14%  as the debt crisis in Greece, and Puerto Rico continues to be a point of concern for credit investors.

Swift Energy Company (NYSE:SFY) just like other oil and gas producers has been forced to raise fresh cash all in the effort of trying to reduce its reliance on credit lines. Oil industry loans remain favorable at the moment and easy to acquire as banks retain the powers to shrink credit availability in case the value of a debtor’s oil and gas reserves continues to fall.

Swift Energy Downgraded

The Wall Street Journal reports that potential creditors who were ready to finance Swift Energy Company (NYSE:SFY) were notified that the deal had been pulled because of the unfavorable market conditions. Swift Energy finds itself in the current financial mess having posted straight quarterly loss amidst the ravaging drop in oil and gas prices. Its 2020 bonds are currently trading at 37 cents on the dollar valuing the company at just $48 million.

The uncertainty around Swift Energy Company (NYSE:SFY)’s long-term prospect has already seen the stock downgraded to a ’sector weight’  from ‘overweight’  by analysts at KeyBanc Capital Markets.  TheStreet research firm on its part maintains a ‘Sell’ rating on the stock.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.