By Rebecca Melvin
New York, Jan. 15 - SandRidge Energy Inc. priced $213.8 million of perpetual convertible preferreds late Wednesday with a dividend of 8.5% and an initial conversion premium of 25%, according to sources.
Pricing of the Rule 144A private offering of 2.25 million shares came at a discount of $95.04 per share. The liquidation price is $100 per share.
There is a greenshoe of 400,000 shares, or about $38 million, and Deutsche Bank Securities Inc. is bookrunner of the offering.
The shares are non-callable for five years and provisionally callable thereafter subject to a price hurdle of 130%.
Holders can convert the shares on April 15, 2009. There is also contingent conversion subject to a 130% price hurdle
No dividends will accrue prior to Aug. 15, and then annual dividends are payable in arrears on Feb. 15 and Aug. 15, beginning on Feb. 15, 2010, if declared by the company's directors.
Net proceeds for the Oklahoma City-based oil and gas company total about $207 million. Money raised will be used to repay an outstanding revolving credit facility and for general corporate purposes
| Issuer: | SandRidge Energy Co.
|
| Issue: | Convertible perpetual preferred stock
|
| Amount: | $213.8 million
|
| Greenshoe: | $38 million
|
| Maturity: | Perpetual
|
| Preferred shares: | 2.25 million
|
| Dividend: | 8.5%
|
| Price: | $95.04, liquidation price is $100
|
| Conversion premium: | 25%
|
| Conversion ratio: | 12.4805
|
| Conversion price: | $8.0125
|
| Call: | Non-callable for five years, provisionally callable thereafter at a hurdle of 130%
|
| Contingent conversion: | Yes, 130%
|
| Takeover protection: | Yes, via investor put and make-whole table
|
| Bookrunner: | Deutsche Bank Securities Inc.
|
| Pricing date: | Jan. 14
|
| Settlement date: | Jan. 21
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: SD
|
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