OKLAHOMA CITY, Feb. 13, 2017 /PRNewswire/ -- SandRidge
Energy, Inc. (NYSE: SD) today announced that it has entered into a
new $600 million reserve based credit
facility with a $425 million
borrowing base (the "Refinancing") effective February 10, 2017.
The Refinancing amended the terms of the prior credit facility
and provides the Company with, among other things:
- an increased principal commitment to $600 million from $425
million;
- a $425 million conforming
borrowing base;
- a $50 million increase in
available cash (representing the release of $50 million in escrow to the Company);
- an elimination of certain negative covenants, such as the PDP
asset coverage ratio, $20 million
minimum liquidity requirement and limitations on capital
expenditures;
- conventional semi-annual borrowing base redeterminations
beginning October 1, 2017;
- a total net leverage ratio covenant of 3.50:1.00 and an
interest coverage ratio covenant of 2.25:1.00; and
- a maturity date of March 31,
2020.
Conversion of Mandatorily Convertible Notes
The Company also announced that the Refinancing triggered a
mandatory conversion under the terms of the Company's indenture
governing the 0.00% convertible senior subordinated notes due 2020
(the "Notes"). Upon settlement of the mandatory conversion, the
remaining $264 million principal
amount of outstanding Notes will convert into approximately 14.1
million shares of the Company's common stock, bringing the total
amount of shares outstanding to approximately 35.9 million shares.
Settlement is expected to occur on February
15, 2017.
Additional information regarding the new credit facility and its
terms is contained in a Current Report on Form 8-K filed with the
Securities and Exchange Commission on February 13, 2017.
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
U.S. Mid-Continent and Niobrara Shale.
CONTACT:
Duane M.
Grubert
EVP – Investor Relations and 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.