Daily News: September 13, 2016

RBC, Barclays, Morgan Stanley Arrange SandRidge $425MM Facility

SandRidge Energy’s plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas. The plan received overwhelming support from its stakeholders and its confirmation enables the company to target emergence from Chapter 11 within the next 30 days, eliminating $3.7 billion in pre-petition funded indebtedness.

The company’s pro forma capital structure will consist of an undrawn $425 million first lien credit facility (maturing in 2020) and $300 million in mandatorily convertible zero coupon debt that will convert into equity. RBC Capital Markets, Barclays and Morgan Stanley Senior Funding are serving as joint lead arranges and joint bookrunners for the first lien credit agreement.

Finally, SandRidge will issue new common stock to its pre-petition second lien and general unsecured creditors representing 100% of the pro forma equity interest in the reorganized company.

The company anticipates that it will emerge and the plan will become effective within 30 days, at which time the company estimates to have more than $400 million of liquidity including cash on hand and funds available under its first lien credit facility.

“The confirmation of our plan is a milestone event toward the restructuring of our business, attributable to the tireless work of many individuals,” said James Bennett, SandRidge president and CEO. “I would like to acknowledge and thank our dedicated employees for their unwavering focus and high-level performance throughout the reorganization process. It’s also important to express my appreciation to our vendors and other stakeholders for their cooperation and support.”

Houlihan Lokey is serving as financial advisor to SandRidge and Kirkland & Ellis is serving as legal counsel.

SandRidge Energy is an oil and natural gas exploration and production company headquartered in Oklahoma City.