UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 14, 2014

 

 

SANDRIDGE ENERGY, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   1-33784   20-8084793

(State or Other Jurisdiction of

Incorporation or Organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

123 Robert S. Kerr Avenue

Oklahoma City, Oklahoma

  73102
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s Telephone Number, including Area Code: (405) 429-5500

Not Applicable.

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01 — Entry into a Material Definitive Agreement

On November 14, 2014, SandRidge Energy, Inc. (the “Company”), Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the other Lenders party to the Third Amended and Restated Credit Agreement, dated as of October 22, 2014 (the “Credit Agreement”), agreed to amend the Credit Agreement and waive any Default that may have arisen under certain provisions of the Credit Agreement. Among other things, the amendment and waiver:

 

    requires the Company to deliver, as soon as available, financial statements for the fiscal quarter ending September 30, 2014 prepared in accordance with GAAP that were to be delivered within 45 days after the end of the fiscal quarter;

 

    requires the Company to deliver, on or prior to December 1, 2014, or such later date as agreed by the Company and the Administrative Agent, financial statements for the fiscal quarter ending September 30, 2014 that were to be delivered within 45 days after the end of the fiscal quarter and, to the extent of any adjustments that may be required as a result of the Company’s ongoing dialogue with the Staff of the Division of Corporation Finance of the U.S. Securities and Exchange Commission regarding previously accrued penalties, are not required to be prepared in accordance with GAAP; and

 

    waives any Default that may have arisen under Sections 5.05, 5.15, 5.16, 6.01(a), 6.01(b), 6.03 or 6.09 of the Credit Agreement as a result of shifting previously accrued penalties to one or more prior accounting periods.

Terms capitalized above have the meaning given to them in the Credit Agreement.

The description above is a summary only and is qualified in its entirety by reference to Amendment No. 1 to the Credit Agreement and Waiver, dated as of November 14, 2014, filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference in response to this item.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

 

10.1    Amendment No. 1 to the Third Amended and Restated Credit Agreement and Waiver, dated as of November 14, 2014, among SandRidge Energy, Inc., Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the other lenders party thereto


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

    SANDRIDGE ENERGY, INC.
    (Registrant)
Date: November 19, 2014     By:   /s/ Eddie M. LeBlanc
      Eddie M. LeBlanc
      Executive Vice President and Chief Financial Officer


EXHIBIT INDEX

 

Exhibit Number

  

Name of Exhibit

10.1    Amendment No. 1 to the Third Amended and Restated Credit Agreement and Waiver, dated as of November 14, 2014, among SandRidge Energy, Inc., Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the other lenders party thereto


Exhibit 10.1

Execution Version

AMENDMENT NO. 1 TO THE THIRD AMENDED AND

RESTATED CREDIT AGREEMENT AND WAIVER

AMENDMENT NO. 1 TO THE THIRD AMENDED AND RESTATED CREDIT AGREEMENT AND WAIVER (this “Amendment and Waiver”), dated as of November 14, 2014, to the Third Amended and Restated Credit Agreement, dated as of October 22, 2014 (as heretofore amended or modified, the “Credit Agreement”), among SANDRIDGE ENERGY, INC., a Delaware corporation (the “Borrower”), each LENDER from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

W I T N E S S E T H :

WHEREAS, the Borrower is party to a 30-year agreement with Occidental Petroleum Corporation (“Occidental”) for the delivery by the Borrower to Occidental of CO2 and the removal of CO2 from the Borrower’s delivered natural gas production (the “Occidental CO2 Agreement”), and pursuant to the Occidental CO2 Agreement, the Borrower is obligated to pay a penalty fee to the extent minimum required CO2 delivery volumes are not met (each such penalty fee, an “Annual CO2 Penalty”); and

WHEREAS, as a result of the Borrower’s ongoing dialogue with the Staff of the Division of Corporation Finance of the U.S. Securities and Exchange Commission (the “SEC”), and as disclosed in the Borrower’s Form 8-K filed on November 4, 2014 with the SEC (the “CO2 Penalty Reallocation 8-K”), some or all of the Annual CO2 Penalties, previously accrued by the Borrower on an annual basis, may be required to be shifted to one or more prior accounting periods of the Borrower (the “CO2 Penalty Reallocation”), which could require restatement of and delay the Borrower’s periodic financial reports under applicable Securities Laws; and

WHEREAS, the parties hereto desire to amend the Credit Agreement to provide reasonable extensions to the Borrower’s covenant to deliver financial statements to allow for such financial statements to be prepared in accordance with the CO2 Penalty Reallocation;

NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1. Defined Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall, after this Amendment and Waiver becomes effective, refer to the Credit Agreement as amended hereby.

SECTION 2 Amendment to Section 6.01. Section 6.01(b) of the Credit Agreement is hereby amended by inserting the following at the end thereof:


provided that, notwithstanding the foregoing, in the case of the fiscal quarter of the Borrower ending September 30, 2014, the Borrower shall instead deliver to the Administrative Agent and the Lenders (x) as soon as available, the financial statements described above for such fiscal quarter ending September 30, 2014 and (y) on or prior to December 1, 2014 (or such later date as shall be agreed by the Borrower and the Administrative Agent), the financial statements described above for such fiscal quarter ending September 30, 2014, it being understood and agreed, however, that such financial statements for such fiscal quarter shall not, to the extent of any adjustments that may be required as a result of the events described in, or contemplated by, the Borrower’s Form 8-K filed with the SEC on November 4, 2014, be required to be prepared in accordance with GAAP (and, accordingly, the certification required to accompany such financial statements for such fiscal quarter may contain a limitation that, solely to the extent of any adjustments that may be required as a result of the events described in, or contemplated by, the Borrower’s Form 8-K filed with the SEC on November 4, 2014, such financial statements were not prepared in accordance with GAAP);”

SECTION 3. Limited Waiver. At the request of the Borrower, the Lenders hereby waive any Default that may have arisen under Sections 5.05, 5.15, 5.16, 6.01(a), 6.01(b), 6.03 or 6.09 of the Credit Agreement as a result of the CO2 Penalty Reallocation. The waiver granted pursuant to this Section 3 shall be limited precisely as written, and shall not extend to any Default or Event of Default under the provisions of any Loan Document with respect to any other transaction, event or occurrence, including, specifically, any transaction, event or occurrence that relates to the CO2 Penalty Reallocation but is not described in, or contemplated by, the CO2 Penalty Reallocation 8-K.

SECTION 4. Representations of Borrower. The Borrower represents and warrants that:

(a) The representations and warranties of the Borrower and each other Loan Party contained in Article 5 of the Credit Agreement and any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct, in all material respects, as of such earlier date, and except to the extent that such representations and warranties shall not be true and correct in all material respects as a result of the events described in, or contemplated by, the CO2 Penalty Reallocation 8-K; and

(b) after giving effect to this Amendment and Waiver, no Default or Event of Default will have occurred and be continuing on the Effective Date.

SECTION 5. Governing Law. This Amendment and Waiver shall be governed by and construed in accordance with the laws of the State of New York.

SECTION 6. Counterparts. This Amendment and Waiver may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

2


SECTION 7. Effectiveness. This Amendment and Waiver shall become effective on the date when the Administrative Agent shall have received from each of the Borrower and the Required Lenders a counterpart hereof signed by such party or facsimile or other written confirmation (in form satisfactory to the Administrative Agent) that such party has signed a counterpart hereof (the “Effective Date”).

SECTION 8. Miscellaneous.

(a) This Amendment and Waiver shall constitute a “Loan Document” under the Credit Agreement.

(b) This Amendment and Waiver, the Credit Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersedes all prior agreements and understandings, both oral and written, among the parties hereto with respect to the subject matter of this Amendment and Waiver, the Credit Agreement and the other Loan Documents.

(c) Except to the extent hereby amended, the Credit Agreement and each of the other Loan Documents remain in full force and effect and are hereby ratified and affirmed. This Amendment and Waiver shall be limited precisely as written and shall not be deemed (i) to be a consent granted pursuant to, or a waiver or modification of, any other term or condition of the Credit Agreement or any of the instruments or agreements referred to therein or (ii) to prejudice any right or rights which the Administrative Agent or any Lender may now have or have in the future under or in connection with the Credit Agreement or any of the instruments or agreements referred to therein.

[SIGNATURE PAGES FOLLOW]

 

3


IN WITNESS WHEREOF, the parties hereto have caused this Amendment and Waiver to be duly executed as of the date first above written.

 

SANDRIDGE ENERGY, INC.
By:  

/s/ Eddie LeBlanc III

Name:   Eddie LeBlanc III
Title:   Executive Vice President and
  Chief Financial Officer

 

[Signature Page to Amendment and Waiver]


BANK OF AMERICA, N.A., as Administrative Agent and a Lender

By:  

/s/ Michael Clayborne

  Name: Michael Clayborne
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


Barclays Bank PLC
By:  

/s/ May Huang

  Name: May Huang
  Title: Assistant Vice President

 

[Signature Page to Amendment and Waiver]


BOKF, N.A. dba Bank of Oklahoma
By:  

/s/ Mike Weatherholt

  Name: Mike Weatherholt
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


CANADIAN IMPERIAL BANK OF
COMMERCE, NEW YORK BRANCH
By:  

/s/ Trudy Nelson

  Name: Trudy Nelson
  Title: Authorized Signatory
By:  

/s/ Daria Mahoney

  Name: Daria Mahoney
  Title: Authorized Signatory

 

[Signature Page to Amendment and Waiver]


CAPITAL ONE, NATIONAL ASSOCIATION
By:  

/s/ Michael Higgins

  Name: Michael Higgins
  Title: Director

 

[Signature Page to Amendment and Waiver]


CITIBANK, N.A.
By:  

/s/ Peter Kardos

  Name: Peter Kardos
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


COMERICA BANK
By:  

/s/ John S. Lesikar

  Name: John S. Lesikar
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


Compass Bank
By:  

/s/ Ian Payne

  Name: Ian Payne
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


Credit Agricole Corporate and Investment Bank as a Lender

By:  

/s/ Sharada Manne

  Name: Sharada Manne
  Title: Managing Director
By:  

/s/ Michael Willis

  Name: Michael Willis
  Title: Managing Director

 

[Signature Page to Amendment and Waiver]


DEUTSCHE BANK AG NEW YORK
BRANCH, as a Lender
By:  

/s/ Kirk L. Tashjian

  Name: Kirk L. Tashjian
  Title: Vice President
By:  

/s/ Peter Cucchiara

  Name: Peter Cucchiara
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


GOLDMAN SACHS BANK USA
By:  

/s/ Michelle Latzoni

  Name: Michelle Latzoni
  Title: Authorized Signatory

 

[Signature Page to Amendment and Waiver]


JPMORGAN CHASE BANK, N.A.
By:  

/s/ Anson D. Williams

  Name: Anson D. Williams
  Title: Authorized Officer

 

[Signature Page to Amendment and Waiver]


KEYBANK NATIONAL ASSOCIATION
By:  

/s/ John Dravenstott

  Name: John Dravenstott
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


MidFirst Bank, as a Lender
By:  

/s/ Steve A. Griffin

  Name: Steve A. Griffin
  Title: Senior Vice President

 

[Signature Page to Amendment and Waiver]


MORGAN STANLEY BANK, N.A.
By:  

/s/ Matthew Meyers

  Name: Matthew Meyers
  Title: Authorized Signatory

 

[Signature Page to Amendment and Waiver]


MUFG UNION BANK, N.A.
By:  

/s/ Rachel Bowman

  Name: Rachel Bowman
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


Natixis, New York Branch
By:  

/s/ Justin Bellamy

  Name: Justin Bellamy
  Title: Director
By:  

/s/ Stuart Murray

  Name: Stuart Murray
  Title: Managing Director

 

[Signature Page to Amendment and Waiver]


PNC Bank, NATIONAL ASSOCIATION
By:  

/s/ Sandra Aultman

  Name: Sandra Aultman
  Title: Managing Director

 

[Signature Page to Amendment and Waiver]


Royal Bank of Canada
By:  

/s/ Don J. McKinnerney

  Name: Don J. McKinnerney
  Title: Authorized Signatory

 

[Signature Page to Amendment and Waiver]


SANTANDER BANK, NA
By:  

/s/ Aidan Lanigan

  Name: Aidan Lanigan
  Title: SVP
By:  

/s/ Jason Hill

  Name: Jason Hill
  Title: SVP

 

[Signature Page to Amendment and Waiver]


SUNTRUST BANK, as Lender
By:  

/s/ Shannon Juhan

  Name: Shannon Juhan
  Title: Vice President

 

[Signature Page to Amendment and Waiver]


The Bank of Nova Scotia
By:  

/s/ Alan Dawson

  Name: Alan Dawson
  Title: Director

 

[Signature Page to Amendment and Waiver]


UBS AG, STAMFORD BRANCH
By:  

/s/ Lana Gifas

  Name: Lana Gifas
  Title: Director
By:  

/s/ Jennifer Anderson

  Name: Jennifer Anderson
  Title: Associate Director

 

[Signature Page to Amendment and Waiver]


Wells Fargo Bank, N.A.
By:  

/s/ Muhammad A. Dhamani

  Name: Muhammad A. Dhamani
  Title: Vice President

 

[Signature Page to Amendment and Waiver]