Oasis increases credit agreement to $1.35 billion, adds two lenders

By Sarah Lizee

Olympia, Wash., Feb. 28 – Oasis Petroleum Inc. entered into an amendment to its credit agreement to increase commitments to $1.35 billion from $1.15 billion and to add two new lenders to the bank group, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, Goldman Sachs Bank USA and Morgan Stanley Bank, NA became lenders.

The next redetermination of the company’s borrowing base is scheduled for April 1.

Wells Fargo Bank, NA is the administrative agent, issuing bank and lender.

As of Dec. 31, the company had $70 million of borrowings and $10.5 million of outstanding letters of credit under the credit facility and $78 million of borrowings under Oasis Midstream Partners LP’s credit facility, resulting in an unused borrowing base capacity of $1,191,500,000 for both revolving credit facilities, according to a press release.

The Oasis Midstream Partners facility has an existing borrowing capacity of $200 million.

On Dec. 13, the company completed a public offering that resulted in $302.6 million of net proceeds. The offering was raised to fund a portion of its acquisition in the Delaware Basin, but was initially used to repay borrowings from the Oasis credit facility.

On Feb. 14, the company borrowed $502 million under the Oasis credit facility to fund cash due at closing of the acquisition.

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

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