New Issue: SandRidge upsizes to $450 million, prices 8¾% 10-year notes at 98.349 to yield 9%

By Paul A. Harris

St. Louis, Dec. 9 - SandRidge Energy, Inc. priced an upsized $450 million issue of 8¾% 10-year senior notes (B3/B+) at 98.349 to yield 9%, according to an informed source.

The notes were talked to yield 9% and to price at a slight discount.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Mitsubishi and RBC Capital Markets Corp. are joint bookrunners for the issue, which was upsized from $400 million.

Proceeds will be used to finance a portion of the acquisition of oil and gas properties in the Permian Basin from Forest Oil Corp. and one of its subsidiaries.

SandRidge is an Oklahoma City-based oil and gas exploration and production company.

Issuer:	SandRidge Energy, Inc.
Face amount:	$450 million, increased from $400 million
Proceeds:	$442,571,000 (approximate)
Maturity:	Jan. 15, 2020
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Mitsubishi, RBC Capital Markets Corp.
Co-managers:	Barclays Capital Inc., Calyon Securities, Credit Suisse, Morgan Stanley & Co., UBS Investment Bank, BBVA Securities Inc., BMO Nesbitt Burns, Scotia Capital, US Bancorp
Coupon:	8¾%
Price:	98.349
Yield:	9%
Spread:	558 bps
Call features:	Make-whole at Treasuries plus 50 bps until Jan. 15, 2015, then callable at a premium
Equity clawback:	35% at 108.75 until Jan. 15, 2013
Trade date:	Dec. 9
Settlement date:	Dec. 16
Ratings:	Moody's: B3
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights
Price talk:	9% yield, at a slight discount

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