AlixPartners is acting as restructuring advisor to Oasis Petroleum, which recently completed its financial restructuring and emerged from Chapter 11, successfully restructuring its balance sheet and reducing its prepetition debt by $1.8 billion.
Oasis’ new capital structure includes a new $575 million reserve-based revolving credit facility maturing in May 2024. The new reserve-based revolving credit facility has a first borrowing base redetermination scheduled for April 1, 2021 and includes a LIBOR plus 300-400 bps rate with a 100 bps floor. Oasis drew $340 million from the facility at emergence.
Oasis’ unsecured claims, including holders of Oasis’ senior unsecured notes, received their proportionate distribution of 100% of Oasis’ newly issued common stock.
Oasis also resolved the Mirada litigation, pursuant to its restructuring support agreement and “pre-packaged” restructuring plan confirmed by the Bankruptcy Court on Nov. 10.
Tudor, Pickering, Holt & Co. and Perella Weinberg Partners are acting as financial advisors for Oasis and Kirkland & Ellis is acting as legal advisor.
Evercore is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison and Porter Hedges are acting as legal advisors to the ad hoc committee of senior noteholders.
“On behalf of the new board of directors, I would like to acknowledge our appreciation to our employees for their diligent work during this process. Oasis is now uniquely positioned with a best-in-class balance sheet, a quality and sustainable long-lived asset base, and a rigorous new capital discipline that should translate into long-term value creation for our shareholders. This new direction for Oasis will be executed within a strong ESG culture to provide value for all stakeholders. The offices of the CEO and non-executive chairman have been separated to reflect the broader strategic issues, including, but not limited to, balancing cash returns and growth initiatives while maintaining operational excellence and sound environmental stewardship,” Douglas E. Brooks, chairman of the board for Oasis, said.