SandRidge Energy Inc. (NYSE: SD) announced Tuesday morning that the company has emerged from Chapter 11 bankruptcy protection and the stock has resumed traded under its previous ticker symbol, SD, on the New York Stock Exchange.
In its pre-arranged Chapter 11 filing in May, the company’s new capital structure includes $425 million in a reserve-based lending facility and about $282 million in mandatorily convertible debt that bears no interest and may be converted at any time at the holders’ option or mandatorily at the earlier of certain events or four years from the effective date of the plan.
Under the terms of the deal, creditors exchanged $3.7 billion in debt for control of the company. SandRidge emerged from bankruptcy protection with $525 million in liquidity, including the $425 million reserve-based lending facility and $100 million in cash, and $317 million in debt, including the $282 million in convertible debt and a $35 million building note secured by mortgages on the company’s Oklahoma City headquarters.
Also pursuant to the pre-arranged plan, SandRidge appointed a new five-member board of directors, effective Tuesday. Other details of the restructured company are available in the press release and at the U.S. Securities and Exchange website.
At the time of the bankruptcy filing in May, law firm Haynes and Boone reported that SandRidge had $1.83 billion in secured debt and $6.43 billion in unsecured debt.
Shares began trading again Tuesday at an opening price of $18.02 and closed at $19.50. In the noon hour Wednesday, shares were trading at $18.39, down about 5.7% for the day.