SandRidge Energy enters into $1 billion restated credit facility

By Marisa Wong

Madison, Wis., June 11 – SandRidge Energy, Inc. entered into a fourth amended and restated credit agreement on June 10 for $1 billion of committed financing, according to an 8-K filing with the Securities and Exchange Commission.

RBC Capital Markets LLC, Barclays Bank plc and Morgan Stanley Senior Funding, Inc. are the joint lead arrangers and bookrunners with Royal Bank of Canada as administrative agent.

Borrowings and letter-of-credit obligations are limited to a periodically determined borrowing base, which is currently $500 million.

The credit facility matures on the earliest of (a) March 2, 2020; (b) 91 days prior to the earliest date of any maturity under or mandatory offer to repurchase the company’s currently outstanding notes; and (c) 91 days prior to the earliest date of any maturity under or mandatory offer to repurchase the company’s new 8¾% senior secured notes due 2020.

Interest is equal to Libor plus an applicable margin between 175 basis points and 275 bps, depending on the borrowing base utilization ratio.

The credit facility contains financial covenants, including maintenance of a ratio of total secured debt to EBITDA not exceeding 2 to 1 at the end of any fiscal quarter and a ratio of current assets to current liabilities of at least 1 to 1 at each quarter-end.

The oil and gas exploration and production company is based in Oklahoma City.

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