SandRidge Energy, Inc. (NYSE: SD) announced the pricing of its private placement of an aggregate of $1.1 billion of Senior Notes, comprised of $825 million of 7.5% Senior Notes due 2023 and $275 million of 7.5% Senior Notes Due 2021. The 2023 Notes were priced at 99.5% of par, resulting in a yield to maturity of 7.57%, and the 2021 Notes were priced at 101.625% of par (plus accrued interest from March 15, 2012), resulting in a yield to maturity of 7.24%. The offering of the notes is expected to settle on August 20, 2012.
Net proceeds from the offering will be used to fund the Company's pending tender offer for up to $350 million in aggregate principal amount of its Senior Floating Rate Notes due 2014, including payment of the accrued, unpaid interest on such notes in connection with the tender offer. To the extent that less than all of the outstanding 2014 Notes are tendered, or in the event our tender offer is not consummated, we intend to use the net proceeds from this offering to redeem or repurchase any or all of the 2014 Notes remaining outstanding, although we have no legal obligation to do so and the selection of any particular redemption date is in our discretion. Any remaining net proceeds will be used for general corporate purposes, including funding our capital expenditure program.
The closing of the offering is subject to customary closing conditions.
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