OKLAHOMA CITY, Oct. 8, 2015 /PRNewswire/ -- SandRidge
Energy, Inc. (the "Company") (NYSE: SD) today announced that
the Company has entered into privately negotiated purchase and
exchange agreements under which it will repurchase $100 million aggregate principal amount of its
senior unsecured notes for $30
million cash and exchange $300
million of senior unsecured notes into convertible
notes.
James Bennett, President and CEO,
commented, "This transaction and its positive effect on the
Company's financial position, represents another meaningful step
forward in our efforts to improve our balance sheet. Today we
addressed another $400 million of
senior unsecured debt through a combination of repurchases at a
substantial discount to face value and exchanges into debt that is
convertible into equity at a 550% premium to the current share
price. On the heels of our acquisition of the Pinon Gathering
system announced Monday and following two de-levering transactions
earlier in the year, we are visibly capturing both balance sheet
and operational opportunities to enhance our value proposition to
investors."
Specifically, the Company will repurchase $2.2 million aggregate principal amount of its
8.75% Senior Notes due 2020 (the "2020 Outstanding Notes"),
$46.6 million aggregate principal
amount of its 7.5% Senior Notes due 2021 (the "2021 Outstanding
Notes"), and $51.2 million
aggregate principal amount of its 7.5% Senior Notes due 2023 (the
"2023 Outstanding Notes") for an aggregate of $30 million in cash.
The Company will exchange $6.6
million aggregate principal amount of the 2020 Outstanding
Notes, $189.3 million aggregate
principal amount of the 2021 Outstanding Notes, $73.5 million aggregate principal amount of the
8.125% Senior Notes due 2022 and $30.6
million aggregate principal amount of its 2023 Outstanding
Notes for $269.4 million aggregate
principal amount of its 8.125% Convertible Senior Notes due 2022
(the "2022 Convertible Notes") and $30.6 million aggregate principal amount of its
7.5% Convertible Senior Notes due 2023 (the "2023 Convertible
Notes"). The proposed additional 2022 Convertible Notes and
2023 Convertible Notes will be issued as part of the respective
outstanding classes of 2022 Convertible Notes and 2023 Convertible
Notes that were originally issued by the Company on August 19, 2015.
Subject to compliance with certain conditions, the Company has
the right to mandatorily convert the Convertible Notes, in whole or
in part, if the volume weighted average price, or VWAP (as defined
in the indentures governing the Convertible Notes), of the
Company's common stock exceeds 40.00% of the applicable conversion
price of the Convertible Notes (representing an initial VWAP
threshold of $1.10 per share) for at
least 20 trading days during the 30 consecutive trading day period
and the Company delivers a mandatory conversion notice. The
Convertible Notes will be convertible under certain circumstances,
at the holder's option, at an initial conversion rate of 363.6363
common shares per $1,000 principal
amount of Convertible Notes (representing an initial conversion
price of $2.75 per share), subject to
certain customary adjustments. Additionally, if a holder exercises
its right to convert on or prior to the first anniversary of the
issuance of the Convertible Notes, such holder will also receive an
early conversion payment of between $112.50
and $121.875 in cash per $1,000 principal amount of Convertible Notes,
depending on which series of notes is being converted. If a
holder exercises its right to convert after the first anniversary
but on or prior to the second anniversary of the issuance of the
Convertible Notes, such holder will receive an early conversion
payment of between $75.00 and $81.25
in cash per $1,000 principal amount
of Convertible Notes, depending on which series of notes is being
converted.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such
jurisdiction.
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an oil and natural gas
exploration and production company headquartered in Oklahoma City, Oklahoma with its principal
focus on developing high-return, growth-oriented projects in the
Mid-Continent region of the United
States. In addition, SandRidge owns and operates a saltwater
gathering and disposal system and a drilling rig and related oil
field services business.
CONTACT:
Duane Grubert
EVP – Investor Relations & Strategy
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102
+1 (405) 429-5515
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SOURCE SandRidge Energy, Inc.