Oasis Petroleum raises cap in note tender, announces early response

New York, Sept. 27 – Oasis Petroleum Inc. raised the cap in its tender offer and announced the early results.

The company will now pay a total of $366.8 million to buy notes in the offer, increased from the original amount of $275 million, according to a news release.

Included in the amount purchased will be all $344,725,000 of Oasis’ $399 million of 7¼% senior notes due 2019 that were tendered by the early participation date.

The 7¼% notes were covered by a fixed-price offer in which the company will pay $1,016.25 per $1,000 principal amount, including an early participation amount of $30.00 per $1,000 for notes tendered by the early deadline. Holders will also receive accrued interest up to but excluding the payment date.

The other three series of notes were covered by a Dutch auction tender offer.

Oasis said the clearing premium in this portion of the tender was set at zero, meaning that the total consideration will be equal to the base price.

Consequently the company will buy $2,196,000 of the $199,161,000 of its $397,697,000 of 6½% senior notes due 2021 that were tendered by the early deadline. The payment will be $932.50 per $1,000 principal amount.

It will also buy $3.42 million of the $230,124,000 of its $940.5 million of 6 7/8% senior notes due 2022 that were tendered by the early deadline. The payment will be $920.00 per $1,000 principal amount.

Finally, Oasis will accept $12,106,000 of the $209,435,000 of its $378.2 million of 6 7/8% senior notes due 2023 that were tendered by the early deadline. The payment will be $932.50 per $1,000 principal amount.

The Dutch auction prices also include the early participation amount of $30.00 per $1,000 principal amount. Again, holders will also receive accrued interest up to but excluding the payment date.

Settlement was expected to take place on Sept. 27.

Oasis said that because the offer is now fully subscribed no further notes will be purchased.

The company announced the tender on Sept. 13 and set a final expiration date of 11:59 p.m. ET on Oct. 11 although that deadline will now have no effect because no further notes will be accepted.

In the Dutch auction, Oasis set a bid range per $1,000 principal amount of $932.50 to $962.50 for the 2021 notes, $920.00 to $950.00 for the 2022 notes and $932.50 to $962.50 for the 2023 notes.

The tender offers were conditioned on Oasis receiving sufficient proceeds from an offering of new notes, together with cash on hand and, if necessary, available borrowings under its revolving credit facility, to fund the offers. Oasis priced $275 million of 2.625% seven-year convertible senior notes on Sept. 14.

RBC Capital Markets, LLC (877 381-2099 or 212 618-7822) is the dealer manager for the tender offers, and D.F. King & Co., Inc. (877 871-1741 or 212 269-5550 or oasispetroleum@dfking.com) is the information agent.

Oasis is a Houston-based oil and natural gas company.

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