Stone Energy -19% after tapping credit facility for $385M

|By:, SA News Editor

Stone Energy (SGY -19.2%) plunges after borrowing $385M under its credit facility, which the company says was nearly all of the remaining available borrowing base.

SGY says it is retaining a financial adviser to consider financial and strategic alternatives in anticipation that its borrowing base re-determination will result in both a reduced go-forward facility and liquidity.

In response, Simmons downgrades shares to Underweight from Neutral with a $2 price target.

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