SandRidge Energy Files Registration Statement for Initial Public Offering of Units of SandRidge Mississippian Trust II
SandRidge Energy, Inc. (NYSE: SD) today announced the filing of a Registration Statement with the Securities and Exchange Commission relating to the initial public offering of approximately $500 million in common units representing beneficial interests in SandRidge Mississippian Trust II, a newly formed Delaware trust. The underwriters will have an option to purchase up to approximately $75 million in additional common units within 30 days of closing to cover over allotments. Application will be made to list the common units of SandRidge Mississippian Trust II on the New York Stock Exchange under the symbol "SDR."
In connection with the offering, SandRidge will convey to the trust certain royalty interests in exchange for the net proceeds from the offering and units representing approximately 48% of the beneficial interest in the trust. The royalty interests will entitle the trust to a percentage of the proceeds received by SandRidge from the production of hydrocarbons from currently producing wells and development wells to be drilled by SandRidge on approximately 53,000 net acres in the Mississippian formation in northern Oklahoma and Kansas. SandRidge intends to use the net proceeds from the offering for general corporate purposes.
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