Business Context and Reporting Period
Company: SandRidge Energy, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: April 21, 2009
Date of Event: April 17, 2009
Context: The Company entered into Amendment No. 6 to its Credit Agreement dated November 21, 2006, with Bank of America, N.A., and other lenders.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or total debt levels. The only specific financial metric disclosed relates to credit facility limits:
- Letter of Credit Sublimit: Increased by $25,000,000.
- Swing Line Sublimit: Increased by $25,000,000.
Material Changes Versus Prior Period
The filing details specific amendments to the existing Credit Agreement rather than period-over-period financial performance changes. Key modifications include:
- Asset Definition: Replaced "East Texas and North Louisiana Assets" with "East Texas and North Louisiana Deep Rights."
- Rate Definitions: Revised definitions of Applicable Rate, Base Rate, and Eurodollar Rate to reflect market changes for debt instruments.
- Letter of Credit Obligations: Removed the obligation to issue a Letter of Credit when a Lender is a Defaulting Lender or Impacted Lender unless adequate security is provided.
- Dispositions: Exempted dispositions of equity interests of SandRidge Midstream Inc. from prohibited dispositions.
Guidance, Outlook, and Risks
Management Commentary: The filing contains no forward-looking guidance, earnings outlook, or management commentary regarding future operations.
Risks and Contingencies: The amendment addresses risks related to Defaulting Lenders and Impacted Lenders by adjusting security requirements for Letters of Credit. The revision of interest rate definitions reflects adaptation to current market conditions for debt instruments.
Unusual Items: None reported in this filing.
Important Facts for Investor Verification
- Verify the full text of Amendment No. 6 to the Credit Agreement (Exhibit 10.1) for complete legal terms.
- Confirm the impact of the revised interest rate definitions on future borrowing costs.
- Assess the strategic implications of the exemption allowing dispositions of SandRidge Midstream Inc. equity interests.
- Note that this filing does not provide updated liquidity or leverage ratios; refer to the most recent 10-Q or 10-K for comprehensive financial health.