By Rebecca Melvin
New York, Nov. 4 - SandRidge Energy Inc. priced $250 million of convertible perpetual preferred stock at par after the market close Thursday with a dividend of 7% and an initial conversion premium of 32.5%, according to a syndicate source.
The Rule 144A deal, which was sold via joint bookrunners Deutsche Bank Securities Inc. and Tudor, Pickering and Holt, has a $50 million greenshoe.
The preferred shares, with a $100 par, are convertible after five years, at which time SandRidge can force conversion if its shares exceed 130% of conversion.
Proceeds will be used for general corporate purposes, including repaying a portion of its revolving credit facility and to fund capital expenditures.
SandRidge is an Oklahoma City-based oil and gas company.
| Issuer: | SandRidge Energy Co.
|
| Issue: | Convertible perpetual preferred stock
|
| Amount: | $250 million
|
| Greenshoe: | $50 million
|
| Maturity: | Perpetual
|
| Preferred shares: | 2.5 million
|
| Dividend: | 7%
|
| Price: | Par, liquidation price is $100
|
| Conversion premium: | 32.5%
|
| Conversion price: | $7.7645
|
| Conversion ratio: | 12.8791
|
| Call: | Non-callable for five years, provisionally callable thereafter at a hurdle of 130%
|
| Takeover protection: | Yes, via make-whole table
|
| Dividend protection: | Yes, conversion ratio adjustment
|
| Bookrunners: | Deutsche Bank Securities Inc. and Tudoe, Pickering and Holt
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 10
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: SD
|
| Stock reference price: | $5.86
|
| Market capitalization: | $2.37 billion
|
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