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Update: Spark Energy Discloses Purchase Price For Oasis Energy

May 14, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Spark Energy, Inc. announced that the purchase price for Oasis Energy is $20.0 million, subject to working capital adjustments, as Spark will acquire Oasis Energy from an affiliate of Spark's founder

As previously reported, NuDevco Partners Holdings, LLC, an affiliate of Spark's founder and majority shareholder, had entered into an agreement to acquire Oasis.

As part of the transaction, Spark will issue $5.0 million of its 5% convertible subordinated notes with a term of five years to the seller. The convertible subordinated notes are convertible into shares of Class B common stock at a conversion price of $14.00 following an 18-month holding period.

Oasis Energy serves 40,000 Residential Customer Equivalents in six states and is active at 19 utilities, several of which are new to Spark

Spark intends to operate the business as a standalone brand given its proven ability to realize strong gross margins through pricing and product mix.

Spark said that the closing of the transaction is subject to various approvals and conditions, including renegotiation of its senior credit facility.

"This transaction is different than our previous transactions, where we purchased strictly customer books. In this transaction, in addition to purchasing a strong customer portfolio, we are also receiving the benefit of a solid brand, established vendor relationships, and the ability to grow in several new markets as we expand our footprint," said Nathan Kroeker, Spark Energy, Inc.'s President and Chief Executive Officer

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