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Friday, February 8, 2013

SandRidge says default possible if board replaced, (NYSE: SD)

SandRidge Energy Corp said replacing its board, as suggested by its third-largest shareholder, TPG-Axon, would lead to a default under its credit agreement and require the company to make an offer to repurchase its senior notes.The U.S. oil and gas producer said, however, that a default under the credit agreement would not have a material consequence.The holders of the senior notes would be unlikely to accept an offer to repurchase, because the notes are trading at values in excess of the repurchase price specified in the note agreement, the company said in a regulatory filing released Friday.Mark Hanson, oil analyst at Morningstar in Chicago, said SandRidge would likely have a number of options in the event of a default.

SandRidge Energy, Inc. (SandRidge) is an independent oil and natural gas company. Shares of SD traded higher by 0.25% or $0.015/share to $5.96. In the past year, the shares have traded as low as $4.81 and as high as $8.98. On average, 14636800 shares of SD exchange hands on a given day and today's volume is recorded at 2172055.