S&P puts Osum on positive watch

S&P said it placed all its ratings for Osum Production Corp., including the B rating on the $172 million first-lien term loan, and parent Osum Oil Sands Corp. on CreditWatch with positive implications.

The placement follows Waterous Energy Fund started a takeover bid for the 55% of Osum Oil Sands it doesn’t already own.

“The WEF acquisition would trigger a change-of-control provision under OPC’s rated term loan, requiring full repayment of the loan. As WEF’s takeover bid circular confirms its intent to fully repay the outstanding amount under OPC’s term loan, the anticipated repayment effectively eliminates the refinancing risk underpinning the negative outlook on our ratings,” S&P said in a press release.

Considering WEF’s plan to repay the loan, S&P said it plans to withdraw the ratings after the repayment.

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