Oasis gives early tender count in capped offer, to call 7¼% notes

By Susanna Moon

Chicago, May 14 – Oasis Petroleum Inc. said the tender offer for four series of its notes has been oversubscribed as of the early tender deadline of 5 p.m. ET on May 11.

As announced April 30, the company was offering to spend up to $400 million in the tender.

The early tenders are as follows with total purchase price for each $1,000 principal amount of notes and the notes listed in order of priority acceptance levels:

• $31,301,000 of the $54,275,000 outstanding 7¼% senior notes due 2019 with a total purchase price of $1,003.75;

• $323,666,000 of the $395,501,000 outstanding 6½% senior notes due 2021 with a total purchase price of $1,025;

• $666,555,000 of the $937.08 million outstanding 6 7/8% senior notes due 2022 with a total purchase price of $1,034.38; and

• $191,045,000 of the $366,094,000 outstanding 6 7/8% senior notes due 2023 with a total purchase price of $1,030.50, which do not have a related consent solicitation.

The total amount includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender deadline.

Oasis plans to accept for purchase all of the tendered 2019 notes and 2021 notes, $35.6 million of tendered 2022 notes using a proration factor of about 5.4% and none of the 2023 notes, according to a company update on Monday.

Oasis also secured the needed consents for the 2019 notes and 2021 notes to amend provisions of the indentures to eliminate substantially all of the restrictive covenants and events of default and to modify the redemption notice requirements.

As a result of prorating the 2022 notes, the consents obtained for that issue will be null and void, and the indentures for the 2022 notes will remain unchanged, the company added.

Oasis said it plans to call all of the remaining 2019 notes at a price of par plus accrued interest to the redemption date of May 29.

The tender was set to continue until 11:59 p.m. ET on May 26; however, the cap has been reached as of the early deadline, the release noted.

Tendered notes may not be withdrawn after the early deadline.

Settlement will occur on May 14 for the early tendered notes.

Wells Fargo Securities, LLC (866 309-6316) and Citigroup Global Markets Inc. (800 558-3745) are the lead dealer managers and the lead solicitation agents. Global Bondholder Services Corp. (866 470-3700 or contact@gbsc-usa.com) is the tender agent and information agent.

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

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