Published on 5/15/2008 in the Prospect News High Yield Daily.
New Issue: Sandridge Energy sells upsized $750 million 10-year notes at par to yield 8%
By Paul A. Harris
St. Louis, May 15 - Sandridge Energy, Inc. priced an upsized $750 million issue of 10-year senior notes (existing B3/confirmed B) at par to yield 8% on Thursday, according to an informed source.
The yield was printed at the tight end of the 8% to 8 1/8% price talk.
The issue was upsized from $500 million.
Banc of America Securities LLC, Barclays Capital and J.P. Morgan Securities Inc. were joint bookrunners for the Rule 144A with registration rights offering. Deutsche Bank Securities, Lehman Brothers and Morgan Stanley were senior co-managers. BNP Paribas, Calyon Securities, Fortis Capital, RBS Greenwich Capital and Wells Fargo Securities were co-managers.
The notes come with five years of call protection.
Proceeds will be used to repay revolver debt, with remaining proceeds, if any, to fund capital expenditures for 2008.
The issuer is an Oklahoma City-based oil and natural gas company.
| Issuer: | Sandridge Energy Inc.
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | June 1, 2018
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, Barclays Capital, J.P. Morgan Securities Inc.
|
| Senior co-managers: | Deutsche Bank Securities, Lehman Brothers, Morgan Stanley
|
| Co-managers: | BNP Paribas, Calyon Securities, Fortis Capital, RBS Greenwich Capital, Wells Fargo Securities
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 407 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until June 1, 2013, then callable at 104, 102.667, 101.333, par on and after June 1, 2016
|
| Equity clawback: | Until June 1, 2011 for 35% at 108.0
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Ratings: | Moody's: B3 (existing)
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 8% to 8 1/8%
|
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