Published on 5/11/2009 in the Prospect News High Yield Daily.
New Issue: SandRidge upsizes to $365.5 million, prices 9 7/8% notes at 95.773 to yield 10¾%
By Paul A. Harris
St. Louis, May 11 - SandRidge Energy, Inc. priced an upsized $365.5 million issue of 9 7/8% seven-year senior notes (B3/B-) at 95.773 to yield 10¾% on Monday, according to an informed source.
The yield came on top of yield talk, and the issue price came within the context of price talk for 4 to 5 points of original issue discount.
The order book was two-times oversubscribed at the upsized amount, according to the source.
The quick-to-market issue came at approximately a 25 basis points concession to the company's outstanding bonds.
Barclays Capital was the lead bookrunner for the Rule 144A/Regulation S with registration rights issue that was upsized from $300 million.
Banc of America Securities LLC, JP Morgan, RBC Capital Markets and RBS Greenwich Capital were joint bookrunners.
Proceeds will be used to repay revolver debt.
SandRidge Energy is an Oklahoma City-based oil and gas exploration and production company.
| Issuer: | SandRidge Energy, Inc.
|
| Face amount: | $365.5 million (upsized from $300 million)
|
| Proceeds: | $350.1 million
|
| Maturity: | May 15, 2016
|
| Security description: | Senior notes
|
| Bookrunners: | Barclays Capital, Banc of America Securities LLC, JP Morgan, RBC Capital Markets, RBS Greenwich Capital
|
| Co-managers: | BNP Paribas Securities Corp., Calyon Securities (USA) Inc., Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey, Inc., Wachovia Capital Markets, LLC, BBVA Securities, Inc., BMO Capital Markets Corp., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc
|
| Coupon: | 9 7/8%
|
| Price: | 95.773
|
| Yield: | 10¾%
|
| Spread: | 809 bps
|
| Call protection: | Four years
|
| Change of control: | 101.0
|
| Trade date: | May 11
|
| Settlement date: | May 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 10¾%, discounted by 4 or 5 points
|
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