Oasis Petroleum to price $250 million seven-year convertibles to yield 2.625%, up 35%-37.5%

By Rebecca Melvin

New York, Sept. 13 – Oasis Petroleum Inc. plans to price $250 million of seven-year convertible senior notes ahead of the market open on Wednesday that were talked at a fixed 2.625% coupon and an initial conversion premium of 35% to 37.5%, according to market sources.

The registered convertibles have a $37.5 million greenshoe and were being priced via RBC Capital Markets LLC acting as lead bookrunning manager.

The bonds are non-callable for four years and then provisionally callable for one year if shares exceed 130% of the conversion price. They have contingent conversion and net share settlement.

Proceeds will be used to fund tender offers for its existing 7.25% senior notes due 2019, 6.5% senior notes due 2021, 6.875% senior notes due 2022 and 6.875% senior notes due 2023.

Oasis Petroleum is a Houston-based independent oil and gas exploration and production company.

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