SandRidge Mississippian Trust has commenced an initial public offering of 26,000,000 common units representing a 52% beneficial interest in the Trust, along with 3,900,000 additional common units that may be purchased at the option of the underwriters to cover over-allotments.
Following completion of the offering, SandRidge Energy, Inc., as sponsor of the Trust, will own approximately 11.3 million common units, assuming no exercise of the underwriters' option, and approximately 12.4 million subordinated units convertible into common units, and the Trust will have a total of 49,725,000 units outstanding. The common units have been approved for listing on the New York Stock Exchange, and will trade under the symbol "SDR."
The Trust will own royalty interests conveyed to it by SandRidge that will entitle the Trust to a percentage of the proceeds received by SandRidge from the production of hydrocarbons from currently producing wells and development wells to be drilled by SandRidge on approximately 53,000 net acres in the Mississippian formation in northern Oklahoma and southern Kansas.
Morgan Stanley & Co. LLC, Raymond James & Associates, Inc., BofA Merrill Lynch, Citigroup Global Markets Inc., and RBC Capital Markets, LLC will serve as joint book-running managers of this offering. UBS Securities LLC, Oppenheimer & Co.Inc., Wunderlich Securities, Inc., Sanders Morris Harris Inc., and Johnson Rice & Company LLC. will serve as co-managers.
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