SandRidge greenshoe fully exercised, lifts 8.5% perpetual convertible preferreds to $251.8 million

By Devika Patel

Knoxville, Tenn., Jan. 21 - Underwriters for SandRidge Energy Inc.'s 8.5% perpetual convertible preferreds exercised their over-allotment option in full for $38 million more of the preferreds, increasing the size of the issue to $251.8 million, the company said in a press release.

As previously reported, the company sold the preferreds at $95.04 on Jan. 14 in a Rule 144A offering via bookrunner Deutsche Bank Securities Inc.

The preferreds have a conversion premium of 25% and a conversion price of $8.0125, which equals a conversion ratio of 12.4805.

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.

Proceeds will be used to repay an outstanding revolving credit facility and for general corporate purposes.

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

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