SandRidge tenders, seeks consents for $350 million floaters due 2014

By Susanna Moon

Chicago, Aug. 6 - SandRidge Energy, Inc. said it began a cash tender offer and consent solicitation for its outstanding $350 million principal amount of its senior floating-rate notes due 2014.

The total purchase price will be $1,002.50 per $1,000 principal amount of notes tendered by the consent deadline at 5 p.m. ET on Aug. 17. The total purchase price includes a consent payment of $30.00 per $1,000 principal amount.

Holders who tender after the consent date will receive the base payment of $972.50 per $1,000 principal amount.

The company also will pay accrued interest to but excluding the settlement date, which is expected to be Aug. 20 for early tenders.

The offer will end at 11:59 p.m. ET on Aug. 31.

SandRidge also is soliciting consents to amend the notes to eliminate almost all of the covenants and default provisions as well as to shorten the minimum redemption notice period to three days from 30 days, according to a company press release.

In order to amend the notes, the company must get the consent of holders of a majority of the outstanding notes. Each holder tendering notes will be deemed to have consented to the proposed amendments. Holders may not deliver consents without also tendering their notes.

If the company receives the needed consents, it will execute a supplement to the indenture governing the notes, which will become effective upon execution but will not become operative until the company purchases the tendered notes.

Tendered notes may be withdrawn by the consent deadline.

The offer is conditioned on completion of a capital markets debt offering with enough proceeds to fund the offer and execution of a supplemental indenture effecting the amendments.

Global Bondholder Services Corp. (866 470-3800 or for banks and brokers 212 430-3774) is the depositary and information agent. Barclays (800 438-3242 or collect 212 528-7581) is the dealer manager and solicitation agent.

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

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