Oasis Midstream gets $200 million five-year revolving credit facility

By Susanna Moon

Chicago, Oct. 2 – Oasis Midstream Partners LP obtained a $200 million five-year revolving credit facility in connection with closing of its initial public offering of common units.

The partnership entered into a credit agreement on Sept. 25 with Wells Fargo Bank, NA as the administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility provides for a letter of credit sublimit of $10 million and a swingline loans sublimit of $10 million.

The initial commitment of $200 million may be increased to up to $400 million.

The revolver matures on Sept. 25, 2022.

Interest on the loans is Libor plus 175 basis points to 275 bps, with an unused fee ranging from 37.5 bps to 50 bps.

The revolver is secured by mortgages and other security interests on substantially all of the partnership’s and its subsidiaries’ properties and assets.

The financial covenants require the following:

• Consolidated total leverage ratio before the date on which one or more of the credit parties have issued at least $150 million of senior notes, or the covenant changeover date, the partnership and OMP Operating’s ratio of total debt to EBITDA on a quarterly basis may not exceed 4.5 times or during an acquisition period 5 times and on a quarterly basis following the covenant changeover date, a ratio of total debt to EBITDA of no more than 5.25 times;

• Consolidated senior secured leverage ratio of no more than 3.75 times on a quarterly basis following the covenant changeover date; and

• Consolidated interest coverage ratio of at least 3 times on a quarterly basis prior to the covenant changeover date and at least 2.5 times afterward.

The company said it closed its firm commitment on its underwritten IPO of 7.5 million common units representing limited partner interests in the partnership on Sept. 25.

The net IPO proceeds of about $115.7 million will be used to make a distribution of about $113.9 million to Oasis Petroleum Inc.

Oasis Midstream is a Houston-based company that owns, develops and acquires a diversified portfolio of midstream assets.

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