18 Apr 2011capital raising announcement● NeutralMajor
On April 12, 2011 the Trust closed its initial public offering of 17,250,000 common units and received perpetual royalty interests in oil and gas properties in Alfalfa, Garfield, Grant, Major and Woods Counties, Oklahoma, plus 20-year term royalty interests, from SandRidge subsidiaries. In return SandRidge E&P and Mistmada received 3,750,000 common units, 7,000,000 subordinated units and the net offering proceeds. SandRidge also agreed to drill horizontal wells (secured by a mortgage), provide hedges through 2015 and administrative services for $200,000 a year, and gained registration rights.