The Firm recently represented the initial purchasers, led by representatives Barclays Capital Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC, in connection with the 144A and Regulation S offering of $1.25 billion aggregate principal amount of 8.75% Senior Secured Notes due 2020 issued by SandRidge Energy, Inc. (“SandRidge”). The Firm also represented Royal Bank of Canada, Barclays Bank PLC and Morgan Stanley Bank, N.A. as lead arrangers in connection with a senior secured revolving reserve-based credit facility for SandRidge, with an initial borrowing base of $500 million and a maximum facility size of $1 billion.
The net proceeds from the notes offering were used to repay all borrowings under SandRidge’s existing revolving credit facility and the remainder will be used for general corporate purposes.
SandRidge is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma with its principal focus on developing high-return, growth-oriented projects in the Mid-Continent region of the United States. In addition, SandRidge owns and operates a saltwater gathering and disposal system and a drilling rig and related oil field services business.
The Simpson Thacher team included Ken Wallach, Ryan Bekkerus, Nakita Cuttino and Wenli Cai (Capital Markets); Robert Rabalais, Richard Sitton, Brandan Still and Shimeng Cheng (Credit); Jonathan Cantor and Michael Badain (Tax); David Mollo-Christensen (Benefits); Michael Isby and Tim Mulvihill (Environmental); Jennie Getsin (Blue Sky); and Jonathan Pall (Collateral). Summer Associates Yianni Georgeton and Nadine Thornton also provided valuable assistance.