SandRidge obtains $725 million bridge loan commitment for Dynamic buy

By Sara Rosenberg

New York, Feb. 2 - SandRidge Energy Inc. has received a commitment for a $725 million unsecured bridge loan to help fund its acquisition of Dynamic Offshore Resources LLC, company officials said in a conference call on Thursday.

The company does not expect to draw on the bridge loan but rather hopes to put in place some form of long-term debt capital.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and the Royal Bank of Scotland plc provided the commitment.

Net leverage will be 3.2 times, officials said.

Under the acquisition agreement, Dynamic Offshore is being purchased for total consideration of $1,275,000,000, consisting of about $680 million in cash and about 74 million shares of SandRidge common stock valued at $8.02 per share.

Closing is expected in the second quarter, subject to customary conditions.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.