22 Mar 2021capital raising announcement● NeutralMajor
On March 22, 2021 the partnership agreed to buy from Oasis Petroleum's subsidiary the remaining 64.7% of Bobcat DevCo and 30% of Beartooth DevCo, which would leave it owning all of both. This acts on the earlier expectation that Oasis's retained stakes could be dropped down to the partnership. Payment is $229.0 million cash plus 12,949,644 new common units, and the incentive distribution rights held by the general partner would be cancelled and converted into 1,850,356 common units. The cash is to come from a planned $450 million senior notes offering (the filing also says about $208 million of the proceeds would repay credit facility borrowings), and a Fourth Amendment to the credit agreement would cut commitments to $450 million, raise pricing and extend maturity from September 2022 once conditions are met. The deal was approved by the independent conflicts committee, and the filing notes Oasis Petroleum is the largest customer and the source of substantially all revenue.