Published on 3/2/2011 in the Prospect News High Yield Daily.
New Issue: SandRidge sells upsized $900 million 10-year notes at par to yield 7½%
By Paul A. Harris
Portland, Ore., March 2 - SandRidge Energy, Inc. priced an upsized $900 million issue of 10-year senior notes (B3/B/) at par to yield 7½% on Wednesday, according to an informed source.
The yield printed on top of the price talk.
RBC Capital Markets was the left bookrunner for the quick-to-market deal, which was upsized from $700 million.
Barclays Capital Inc., Bank of America Merrill Lynch, Mitsubishi UFJ Securities (USA) and Wells Fargo Securities were the joint bookrunners.
The Oklahoma City-based oil and natural gas company plans to use the proceeds to repurchase its existing 8 5/8% senior notes due 2015 and for general corporate purposes, including the repayment of borrowings under its revolver.
| Issuer: | SandRidge Energy, Inc.
|
| Amount: | $900 million, increased from $700 million
|
| Maturity: | March 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | RBC Capital Markets
|
| Joint bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Mitsubishi UFJ Securities (USA), Wells Fargo Securities
|
| Senior co-managers: | BNP Paribas Securities, Capital One Southcoast, Credit Agricole CIB, RBS Securities, UBS Investment Bank
|
| Co-managers: | BBVA Securities, BOSC, Comerica Securities, KeyBanc Capital Markets
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 405 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 15, 2016, then callable at 103.75, 102.50, 101.25, par on and after March 15, 2019
|
| Equity clawback: | 35% at 107.5 until March 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | March 2
|
| Settlement date: | March 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7½% area
|
| Marketing: | Quick to market
|
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