SandRidge holders deliver tenders, consents for 94.5% of 8 5/8% notes

By Susanna Moon

Chicago, March 15 - SandRidge Energy Inc. said it received tenders and consents for $614,224,000, or about 94.5%, of its $650 million of 8 5/8% senior notes due 2015 as of the consent expiration at 5 p.m. ET on March 14.

The company planned to execute a supplemental indenture on March 15 that eliminates almost all of the covenants and some default provisions in the indenture and shortens the minimum redemption notice period to three days from 30 days.

The supplemental indenture will become operative when the company purchases the majority of tendered notes on March 15.

The notes are callable at 104.313 on April 1.

Consents were needed from the holders of a majority of the outstanding principal amount of notes. Holders who tender will be deemed to have consented, and holders may not deliver consents without also tendering their notes.

The company is offering $1,046.88 per $1,000 principal amount of notes tendered. This includes a consent payment of $30.00 for each note tendered by the consent deadline.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be March 15 for notes tendered by the consent date.

The tender offer will continue until 11:59 p.m. ET on March 28. It began on March 1.

The offer is subject to the execution of a supplemental indenture effecting the amendments and the completion of a capital markets debt offering yielding proceeds that, when taken together with cash on hand and borrowings under the company's senior credit facility, are enough to pay for the tendered notes.

SandRidge priced an upsized $900 million issue of 10-year senior notes at par to yield 7½% on March 2.

The dealer manager and solicitation agent is RBC Capital Markets, LLC (212 618-7822 or 877 381-2099). The depositary and information agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 488-1500).

SandRidge Energy is an Oklahoma City-based oil and natural gas company.

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