While it deals with a Chapter 11 bankruptcy, Oklahoma City’s SandRidge Energy announced the closing of a new $30 million credit facility.
The announcement explained the facility is with affiliates of Icahn Enterprises, one of its major shareholders and consists of a $10 million revolving loan facility and a $20 million term loan facility. The prior credit agreement was with a lending syndicate led by the Royal Bank of Canada and was terminated effective Nov. 30 of this year.
According to the SandRidge announcement, the new credit facility will charge the same interest rate as the previous one but will have no scheduled borrowing base determinations and no longer charge a commitment fee. It will mature on Nov. 30 of 2023.
“It substantially extends our liquidity runway on more efficient pricing and other terms than we believe we could achieve in the current oil & gas reserve-based lending market. It also underscores the benefit of having Icahn Enterprises as a supportive major shareholder,” stated Carl Giesler, SandRidge’s President and CEO.
SandRidge shares rose 4.9% in trading on Tuesday following word of the new credit facility.
Click here to view filing with SEC.
