19 Aug 2011capital raising announcement● NeutralMajor
The Trust closed its IPO of 34,500,000 common units on August 16, 2011 and received perpetual royalty interests in oil and gas properties in Andrews County, Texas from SandRidge's subsidiary. In exchange, SandRidge's subsidiaries received 4,875,000 common units, 13,125,000 subordinated units and about $584 million of net IPO proceeds. SandRidge also agreed to a drilling obligation secured by a lien, a hedging arrangement through March 31, 2015, a $300,000 per year administrative services fee, and registration rights.