Oasis Petroleum Inc. (NYSE: OAS) has priced an upsized public offering of $275 million aggregate principal amount of its 2.625% senior unsecured convertible notes due 2023. The notes will be issued at par. Oasis has also granted the underwriters a 30-day option to purchase up to an additional $25.0 million aggregate principal amount of the Notes. The offering is expected to close on September 19, 2016, subject to customary closing conditions.
The company intends to use the net proceeds from the offering of the notes, together with additional borrowings under its revolving credit facility, if needed, to fund separately announced 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. To the extent that the tender offers are not completed, Oasis may use a portion of the net proceeds from the offering of the notes for general corporate purposes, which may include redemptions or repurchases of the senior notes.
RBC Capital Markets is acting as sole structuring advisor and RBC Capital Markets and Citigroup are acting as lead joint book-running managers for the offering, and Deutsche Bank Securities, Goldman, Sachs & Co., JP Morgan and Wells Fargo Securities are acting as joint book-running managers for the offering.