SandRidge Energy begins tender offer, consent bid for 8 5/8% notes

By Angela McDaniels

Tacoma, Wash., March 1 - SandRidge Energy Inc. began a tender offer and a consent solicitation for its $650 million of 8 5/8% senior notes due 2015, according to a company news release.

The company is soliciting consents to proposed amendments that would eliminate almost all of the covenants and some default provisions in the indenture and shorten the minimum redemption notice period to three days from 30 days.

The notes become callable at 104.313 on April 1.

Consents are needed from the holders of a majority of the outstanding principal amount of notes in order to make the changes. 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 5 p.m. ET on March 14, the consent expiration.

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 expiration.

The tender offer will expire at 11:59 p.m. ET on March 28.

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.

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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