By Paul A. Harris
Portland, Ore., May 25 – Oasis Petroleum Inc. priced a $400 million issue of five-year senior notes (B3/B+) at par to yield 6 3/8% on Tuesday, according to market sources.
The yield printed 12.5 basis points tighter than the 6½% to 6¾% yield talk. Initial guidance was in the low-7% area.
The deal was heard to be playing to $1.1 billion of demand, a trader said.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included Wells Fargo Securities LLC, RBC Capital Markets LLC, Mizuho Securities USA Inc., Truist Securities Inc., Citizens Capital Markets Inc. and Regions Securities LLC.
The Houston-based energy exploration and production company plans to use the proceeds to help fund the acquisition of select Williston Basin assets from QEP Energy Co. and for general corporate purposes.
If the acquisition is not consummated or extended by Sept. 27, 2021 the notes will be redeemed at par plus accrued interest.
| Issuer: | Oasis Petroleum Inc.
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| Amount: | $400 million
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| Maturity: | June 1, 2026
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, RBC Capital Markets LLC, Mizuho Securities USA Inc., Truist Securities Inc., Citizens Capital Markets Inc. and Regions Securities LLC
|
| Coupon: | 6 3/8%
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| Price: | Par
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| Yield: | 6 3/8%
|
| Spread: | 560 bps
|
| Call protection: | Two years
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| Trade date: | May 25
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| Settlement date: | June 9
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| Ratings: | Moody's: B3
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
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