SandRidge Energy Inc. (SD) said Oct. 8 it has launched a buy back and exchange offer of $400 million senior notes.
The Oklahoma City company entered into privately negotiated purchase and exchange agreements to repurchase $100 million of its senior unsecured notes for $30 million cash. It will also exchange $300 million of senior unsecured notes for convertible notes.
The transaction represents "another meaningful step forward in our efforts to improve our balance sheet," said James Bennett, Sandridge president and CEO.
"Today we addressed another $400 million of senior unsecured debt through a combination of repurchases at a substantial discount to face value and exchanges into debt that is convertible into equity at a 550% premium to the current share price," Bennett said in a statement.
The company also said Oct. 5 it will buy back the Piñon Gathering system in West Texas that will support its natural gas production in the region for $126 million.
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