OKLAHOMA CITY -- SandRidge Mississippian Trust II announced today that it has closed its initial public offering of 29,900,000 common units, including 3,900,000 common units sold pursuant to the exercise of the underwriters' over-allotment option, representing a 60% beneficial interest in the Trust. SandRidge Energy Inc. (NYSE: SD) as sponsor of the Trust, owns approximately 7.4 million common units and approximately 12.4 million subordinated units convertible into common units. The Trust has a total of 49,725,000 trust units outstanding. The common units trade on the New York Stock Exchange under the symbol "SDR."
Gross proceeds of the transaction, before the underwriting discount, were approximately $628 million. Before payment of offering expenses, SandRidge received approximately $590 million as partial consideration for the conveyance of the royalty interests held by the Trust.
Morgan Stanley & Co. LLC, Raymond James & Associates, Inc., BofA Merrill Lynch, Citigroup Global Markets Inc., and RBC Capital Markets, LLC served as joint book-running managers of the offering. UBS Securities LLC, Oppenheimer & Co. Inc., Wunderlich Securities, Inc., Sanders Morris Harris Inc., and Johnson Rice & Company L.L.C. served as co-managers.
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