By Rebecca Melvin
New York, Sept. 14 – Oasis Petroleum Inc. priced an upsized $275 million of seven-year convertible senior notes ahead of the market open on Wednesday at par to yield 2.625% with an initial conversion premium of 35%, according to a term sheet.
The registered convertible deal was initially talked at $250 million in size. The deal’s greenshoe was downsized to $25 million from an initially talked $37.5 million.
Pricing came at the fixed 2.625% coupon that was talked and at the cheap end of the 35% to 37.5% premium talk.
Joint bookrunning managers were RBC Capital Markets LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
The bonds are non-callable until Sept. 15, 2020 and then are provisionally callable if shares exceed 130% of the conversion price for 20 out of 30 consecutive trading days.
The securities have contingent conversion and net share settlement, as well as takeover protection via a make-whole premium upon conversion.
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.
| Issuer: | Oasis Petroleum Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $275 million, upsized from $250 million
|
| Greenshoe: | $25 million, downsized from $37.5 million
|
| Maturity: | Sept. 15, 2023
|
| Bookrunners: | RBC Capital Markets LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Coupon: | 2.625%
|
| Price: | Par
|
| Yield: | 2.625%
|
| Conversion premium: | 35%
|
| Conversion price: | $13.10
|
| Conversion ratio: | 76.3650
|
| Calls: | Non-callable until Sept. 15, 2020, then provisionally callable at 130% price hurdle
|
| Puts: | No
|
| Contingent conversion: | Yes
|
| Net share settlement: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 2.625% fixed, up 35%-37.5%
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 19
|
| Distribution: | Registered
|
| Stock reference price: | $9.70 as of close Sept. 13
|
| Stock symbol: | NYSE: OAS
|
| Market capitalization: | $1.75 billion
|
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