Sabine Oil & Gas LLC and Forest Oil Corp. announced Dec. 16 that they closed the all-stock business combination on a revised basis.

The combined entity intends to change its name to Sabine Oil & Gas Corp., and is expected to be one of the upstream industry’s largest operators and lease holders in East Texas, benefiting from management expertise, streamlined operations and economies of scale.

The combination also results in core positions in the Eagle Ford, North Louisiana Haynesville and Granite Wash that provide optionality for development and monetization.

Sabine will own 73.5% of the combined company with voting power capped at 49.9%. Revised transaction terms require no refinancing of Forest and Sabine oustanding bonds, reducing transaction costs and interest expense by more than $100 million over the next three years.

The combined company will have in excess of $480 million of liquidity at closing.

David Sambrooks, the combined company’s president and CEO, said in a statement, “Since we announced the combination in May 2014, market dynamics have changed considerably but the logic for combining these two complementary companies has not. Today’s closing will create a strong platform for growth and bring stability and upside opportunity to stockholders of the combined company. The combined asset portfolio creates one of the upstream industry’s largest East Texas players, while generating operating synergies, economies of scale and optimized capital allocation.”

Patrick McDonald, Forest’s president and CEO, said in a statement, “This combination, as revised, is clearly in the best interest of Forest and its shareholders, and we are very pleased to have completed it.”