HOUSTON, Sept. 13, 2016 /PRNewswire/ — Oasis Petroleum Inc. (“Oasis” or “the Company”) (NYSE: OAS) announced today that it intends, subject to market and other conditions, to offer $250 million in aggregate principal amount of a series of senior unsecured convertible notes due 2023 (the “Notes”). Oasis expects to grant the underwriters in the offering a 30-day option to purchase up to an additional $37.5 million aggregate principal amount of the Notes. Oasis 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 (collectively, the “Senior Notes”). 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 redemption or repurchases of the Senior Notes.
The Notes are expected to pay interest semi-annually and will be convertible into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. The Notes will mature on September 15, 2023, unless earlier converted, redeemed or repurchased in accordance with their terms prior to such date. Prior to March 15, 2023, the Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The interest rate, initial conversion rate and certain other pricing terms of the Notes will be determined at the time the offering is priced by Oasis and the underwriters.
RBC Capital Markets is acting as sole structuring advisor and lead book-running manager for the offering. The Notes are being offered and will be sold pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. This offering is being made only by means of a prospectus dated July 15, 2014 and related prospectus supplement dated September 13, 2016. Before you invest, you should read the preliminary prospectus supplement and accompanying base prospectus in that registration statement for more complete information about this offering. When available, copies of these documents may be obtained from any of the underwriters by contacting:
RBC Capital Markets, LLC
Attention: Prospectus Department
Three World Financial Center, 200 Vesey Street, 8th floor
New York, New York 10281-8098
Telephone: (877) 822-4089
You may also obtain these documents free of charge when they are available by visiting the Securities and Exchange Commission’s website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.