March 4, 2015 Comments (0) Blog, Securities Fraud

Update for SandRidge Energy and Hercules Offshore Bond Investors

(Last Updated On: July 17, 2015)

The White Law Group continues to investigate the liability that brokerage firms may have for recommending risky investments in shale energy companies and their leveraged debt (primarily in the form of junk bonds).

Two of the most leveraged companies in the energy space — Hercules Offshore and SandRidge Energy  — have recently been downgraded by separate analysts to zero, signally significant concern in these two companies ability to repay their debt.

As of Feb. 15, Hercules had only 10 of its 24 rigs working, with four of those working rigs completing their contracts within the next three months.

SandRidge bonds are now trading at under 70 cents on the dollar for a more than 14% yield. Recently, KLR Group downgraded SandRidge to zero.

Here is a listing of the SandRidge bond offerings:

 

Sandridge Engy 7.5% 03/15/2021 1,175.0 70.9 7.500 Fixed No No 15.00
Sandridge Engy 7.5% 03/15/2021 900.0 7.500 Fixed No No
Sandridge Engy 7.5% 02/15/2023 825.0 69.3 7.500 Fixed No No 14.04
Sandridge Engy 7.5% 02/15/2023 825.0 7.500 Fixed No No
Sandridge Engy 144A 7.5% 02/15/2023 825.0 7.500 Fixed No Yes
Sandridge Engy 8% 06/01/2018 750.0 8.000 Fixed No No
Sandridge Engy 8.125% 10/15/2022 750.0 0.0 8.125 Fixed No No
Sandridge Engy 144A 8.125% 10/15/2022 750.0 8.125 Fixed No Yes
Sandridge Engy 8.125% 10/15/2022 750.0 73.4 8.125 Fixed No No 13.89
Sandridge Engy 8.625% 04/01/2015 650.0 8.625 Fixed Yes No
Sandridge Engy 8.75% 01/15/2020 450.0 8.750 Fixed No No
Sandridge Engy 144A 8.75% 01/15/2020 450.0 8.750 Fixed No Yes
Sandridge Engy 8.75% 01/15/2020 450.0 77.6 8.750 Fixed No No 15.47
Sandridge Engy 9.875% 05/15/2016 365.5 9.875 Fixed Yes No
Sandridge Engy 7.5% 03/15/2021 275.0 7.500 Fixed No No
Sandridge Engy 144A 7.5% 03/15/2021 275.0 7.500 Fixed No Yes
Sandridge Engy 144A 7.5% 03/15/2021 0.002 7.500 Fixed No Yes

 

 

Here is a listing of the Hercules bond offerings:

Hercules Offshore 8.75% 07/15/2021 400.0 41.5 8.750 Fixed No No 29.67
Hercules Offshore 144A 8.75% 07/15/2021 400.0 8.750 Fixed No Yes
Hercules Offshore 7.5% 10/01/2021 300.0 34.8 7.500 Fixed No No 31.58
Hercules Offshore 144A 7.5% 10/01/2021 300.0 7.500 Fixed No Yes
Hercules Offshore 144A 6.75% 04/01/2022 300.0 6.750 Fixed No Yes
Hercules Offshore 7.125% 04/01/2017 300.0 7.125 Fixed Yes No
Hercules Offshore 6.75% 04/01/2022 300.0 43.0 6.750 Fixed No No 23.36
Hercules Offshore 10.5% 10/15/2017 300.0 Middle 102.8 10.500 Fixed No No 9.80
Hercules Offshore 144A 10.25% 04/01/2019 200.0 10.250 Fixed No Yes
Hercules Offshore 10.25% 04/01/2019 200.0 113.3 10.250 Fixed No No 6.94
Hercules Offshore 144A Cv 3.375% 06/01/2038 83.1 3.375 Fixed Yes Yes
Hercules Offshore 144A 7.125% 04/01/2017 79.9 7.125 Fixed Yes Yes
Hercules Offshore 144A 10.5% 10/15/2017 46.3 Middle 10.500 Fixed No Yes
Hercules Offshore Cv 3.375% 06/01/2038 7.027 100.0 3.375 Fixed Yes No 3.37
Hercules Offshore 10.5% 10/15/2017 10.500 Fixed Yes

 

Investors in these companies have options.  If you purchased investments in SandRidge or Hercules at the recommendation of your financial advisor, you may have recourse.

Brokerage firms are required to perform due diligence on any investment they recommend and to ensure that all recommendations are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.  If they fail to do either, they can be held liable for losses in a FINRA arbitration claim.

To discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on the firm, visit http://www.whitesecuritieslaw.com.

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