Published on 3/26/2021 in the Prospect News High Yield Daily.
New Issue: Oasis Midstream sells $450 million eight-year notes at par to yield 8%
By Paul A. Harris
Portland, Ore., March 26 – Oasis Midstream Partners LP priced a $450 million issue of eight-year senior notes (B2/B) at par to yield 8% on Friday, according to market sources.
The yield printed at the wide end of the 7¾% to 8% yield talk and well wide of initial guidance in the high 6% area.
Citigroup Global Markets Inc. was lead left on the deal. Joint bookrunners were Wells Fargo Securities LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Mizuho Securities USA Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Regions Securities LLC and Truist Securities Inc.
Proceeds will be used to acquire Oasis Petroleum’s remaining midstream assets and repay approximately $208 million of outstanding borrowings under its revolving credit facility.
Oasis Midstream is a Houston-based limited partnership formed by Oasis Petroleum to develop and operate its midstream assets.
| Issuers: | Oasis Midstream Partners LP and OMP Finance Corp.
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| Amount: | $450 million
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| Maturity: | April 1, 2029
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| Securities: | Senior notes
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Wells Fargo Securities LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Mizuho Securities USA Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Regions Securities LLC and Truist Securities Inc.
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| Co-managers: | BOK Financial Securities Inc., Commerz Markets LLC, Morgan Stanley & Co. LLC and Raymond James & Associates
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Spread: | 669 bps
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| First call: | Make-whole call at Treasuries plus 50 bps until April 1, 2024, then callable at 104
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| Equity clawback: | 40% at 108 until April 1, 2024
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| Trade date: | March 26
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| Settlement date: | March 30
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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
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| Price talk: | 7¾% to 8%
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| Marketing: | Roadshow
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