Daily News: May 17, 2016

SandRidge Energy Files Chapter 11; RBC to Provide RBL Revolver

Oklahoma City-based SandRidge Energy has voluntarily filed petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas to consummate a “pre-arranged” reorganization through a restructuring support agreement (RSA) entered into with holders of approximately 98% in principal amount outstanding under the company’s reserve-based lending facility (RBL), 79% in principal amount of the company’s second lien notes and 55% in principal amount of the company’s senior unsecured notes.

The RSA contemplates an RBL facility and the equitization of approximately $3.7 billion of other funded indebtedness.

Royal Bank of Canada will serve as administrative agent, swing line lender and L/C issuer for a lender group that will provide a $425 million RBL revolving credit facility that will convert amounts outstanding under an existing credit agreement.

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