SandRidge Energy Inc. recently announced the closing of a $30 million credit facility with affiliates of Icahn Enterprises, the New York-based holding company led by activist shareholder Carl Icahn.

In a statement Carl Giesler, SandRidge’s president and CEO, commented: “We appreciate Icahn Enterprises and its affiliates working with us to put this facility in place. It substantially extends our liquidity runway on more efficient pricing and other terms than we believe we could achieve in the current oil and gas reserve-based lending market. It also underscores the benefit of having Icahn Enterprises as a supportive major shareholder.”

Icahn is SandRidge’s largest shareholder with a 13.46% stake in the company. The Oklahoma City-based independent E&P is active in the northwestern STACK in Oklahoma and the North Park Basin in Colorado’s Jackson County.

In the third-quarter, SandRidge closed the sale of its skyscraper in Oklahoma City for $35.4 million in net proceeds, a figure that represents more than half of the company’s $61 million value on Wall Street. Proceeds from the sale will go toward significantly reducing the company’s net debt position and should alleviate any concerns that SandRidge would re-enter bankruptcy after exiting bankruptcy in 2016.

The new credit facility announced Nov. 30 replaced SandRidge’s prior credit agreement, which was with a lending syndicate led by Royal Bank of Canada. The prior credit facility was terminated effective Nov. 30 and otherwise would have matured on April 1, 2021.

SandRidge’s credit pact with Icahn comprises a $10 million revolving loan facility and $20 million term loan facility that will charge the same interest rate as the previous facility. However, unlike the old facility, it will have no scheduled borrowing base redeterminations and no longer charge a commitment fee, according to the company release on Nov. 30.

The new credit facility matures November 2023. SandRidge has the right to prepay loans under the facility at any time without a prepayment penalty, other than customary “breakage” costs with respect to LIBOR loans.