SandRidge Energy, Inc. (fka SDOCQ)

[Porgie Tirebiter]

The most expensive debt SD has is $650 million in 8.625% bonds which mature this coming April. That's probably around 8% of the total outstanding debt. Current ratio is 1.82 while Quick ratio is 1.77% (healthiest I've ever seen for SD) so there is no way the debt holders are going to give that up early.

Next up is $750 million at 8% in June 2018 which will represent about 10% outstanding assuming SD issues no more new debt. Again, with healthy ratios you aren't going to be able to retire that without paying a massive cash premium.

Then we go all the way out to 2021 when bonds yielding 7.5% mature. Right now 7.5% yield is a great deal for the bondholders. Again, that's right now. However, today's interest rate environment is artificially low and can't last. Who's to say that in five years that yield may be a really good deal for SD and a poor deal for the bondholders?

I'm not trying to convince anyone of anything, I'm doing the research for my own education. My thoughts are that SD commons are discounted at $5 and the debt is expensive.