Plains Offshore expects to enter into $300 million revolver

By Sara Rosenberg

New York, Oct. 28 - Plains Offshore Operations Inc. plans on getting a new $300 million revolving credit facility, according to a news release.

Also, the company announced that EIG Global Energy Partners will purchase a 20% equity interest in it from Plains Exploration & Production Co.

As part of the agreement, Plains Offshore will issue to EIG 8% convertible preferred stock and non-detachable warrants for common stock.

For the equity stake, Plains Exploration will receive $450 million of cash proceeds that will be used to fund Plains Offshore's share of capital investment in the Lucius oil development project and the Phobos prospect exploratory drilling planned for 2012.

Closing is expected in the fourth quarter, subject to customary conditions.

Plains Offshore is a holder of an oil-focused Gulf of Mexico portfolio. Plains Exploration is a Houston-based oil and gas company.

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