HOUSTON, Oct. 6, 2015 /PRNewswire/ — Oasis Petroleum Inc. (NYSE: OAS) (“Oasis” or the “Company”) announced today that the lenders under its senior secured revolving credit facility completed their regular semi-annual redetermination of the borrowing base, resulting in a borrowing base of $1,525 million. The next redetermination of the borrowing base is scheduled for April 1, 2016.
Additionally, the Company announced the commencement of three concurrent consent solicitations respecting amendments (the “Amendments”) to the indentures (the “Indentures”) governing its outstanding 7.25% Senior Notes due 2019, 6.5% Senior Notes due 2021 and 6.875% Senior Notes due 2023 (collectively, the “Notes”). Currently, $400,000,000 in aggregate principal amount of the Notes of each series is outstanding.
The Amendments would permit the Company to incur secured indebtedness under its senior secured revolving credit facility in an amount at any time outstanding greater than or equal to the amount of its borrowing base under that facility. The Company is seeking the Amendments to provide it with greater financial flexibility.
Each consent solicitation will expire at 5:00 p.m., New York City time, on Friday, October 16, 2015, unless extended (the “Expiration Date”). Each consent solicitation is conditioned on the receipt of consents from holders of record as of October 5, 2015 (the “Record Date”) of a majority in aggregate principal amount of the Notes of each series (the “Requisite Consents”).
The Company will, promptly after the Expiration Date with respect to any consent solicitation and the satisfaction or waiver of all conditions to such consent solicitation, pay to each holder of Notes who has delivered (and not revoked) a valid consent in favor of the Amendments a cash payment (the “Consent Fee”) of $10.00 for each $1,000 principal amount of Notes in respect of which such consent has been delivered.
The Amendments to each Indenture will be effected by, and will become effective upon, execution of a supplemental indenture. Oasis proposes to execute each supplemental indenture as soon as practicable after obtaining the related Requisite Consents. At that time, the Amendments effected by such supplemental indenture will become effective and consents may no longer be revoked; however, such Amendments will not become operative until the Consent Fee is paid to the holders who have delivered (and not revoked) valid consents prior to the Expiration Date.
Oasis is making each consent solicitation concurrently with the others, but each consent solicitation is being made independently of the others, and Oasis may extend, abandon, terminate or amend one consent solicitation without extending, abandoning, terminating or amending any other consent solicitation. For a complete statement of the terms and conditions of the consent solicitations, holders of the Notes should refer to Oasis’s Consent Solicitation Statement, dated October 6, 2015, which is being sent to all holders of the Notes as of the Record Date.
The Solicitation Agent in connection with the consent solicitation is Wells Fargo Securities, LLC. Questions regarding the consent solicitation may be directed to Wells Fargo Securities, LLC, Attention: Liability Management Group at (866) 309-6316 (toll free) or (704) 410-4760 (collect). D. F. King & Co., Inc. is serving as Information Agent and Tabulation Agent in connection with the consent solicitations. Requests for assistance in delivering consents or for additional copies of the consent solicitation statement should be directed to the Information Agent at (800) 499-8159 (toll free) or (212) 269-5550 (banks and brokers) (collect).
This announcement is not an offer to purchase, a solicitation of an offer to purchase, or a solicitation of consents with respect to any securities. The consent solicitations are being made solely by Oasis’s Consent Solicitation Statement and are subject to the terms and conditions stated therein.
