'Now, I want to set matters right. I do! And maybe you can help do that?
'See, Nate said that before he gave the sword to Blake, he was going to test the blade against some boars around the abandoned graveyard north of Bree.
'If you find him there, maybe you can convince him to return Lofar's sword and leave my family alone. What do you say?'
Threatened by Nate, a lackey of a brigand named Blake, that he must provide him a sword or his family would be harmed, Kenton Thistleway stole Lofar's blade.
1. Nate may be found near the boar-dens in the valley below the abandoned graveyard, north of Bree.
Kenton told you that Nate said he was going to test the sword on some boars who roam near the abandoned graveyard north of Bree. If you can find Nate there, perhaps you can get Lofar's sword back.
2. Kenton Thistleway can be found near Bree's West-gate.
You found the brigand Nate, who stole Lofar's blade. Unfortunately for him, the blade broke and he was slain by one of the boars he sought to kill. You should speak to Kenton Thistleway and let him know that Nate will no longer trouble his family.
3. Lofar Ironband can be found in the courtyard of the Stone-quarter in Bree, along the road south-east of the West-gate.
You found Nate dead and Lofar's sword broken. Now Kenton Thistleway is afraid that the brigand Blake will come looking for his sword and will harm Kenton's family when he finds that it does not exist. Kenton has asked you to convince Lofar Ironband to forge another that he can use to appease Blake
There is often a named thicktusk roaming around the corpse, but it will venture far enough away that you can complete the quest without bothering him.