SandRidge Energy Inc. (NYSE: SD) has closed its private offering of $1.25 billion in aggregate principal amount of senior secured notes due 2020. The notes were issued at par and bear interest at a rate of 8.75% per annum.
The notes are secured on a second-lien priority basis and guaranteed by each of SandRidge's subsidiaries that guarantee the company's revolving credit facility. In addition, the company's amended and restated first-lien revolving bank credit facility with an initial $500 million borrowing base became effective June 10.
SandRidge used a portion of the net proceeds from the offering of the notes to repay all borrowings under its existing revolving credit facility and will use the remainder for general corporate purposes.