Energy XXI to sell $300 million five-year convertibles at 2.75%-3.25%, up 47.5%-52.5%

By Rebecca Melvin

New York, Nov. 18 - Energy XXI (Bermuda) Ltd. plans to price $300 million of five-year convertible notes after the market close Monday that were talked to yield 2.75% to 3.25% with an initial conversion premium of 47.5% to 52.5%, according to a syndicate source.

The Rule 144A deal has a greenshoe for up to $45 million of additional notes.

Energy XXI also plans to repurchase up to $100 million shares of common stock.

Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the joint bookrunners of the convertible offering.

Proceeds are earmarked for general corporate purposes, which may include working capital, capital expenditures or acquisitions.

The notes are non-callable but have takeover protection and net share settlement.

Energy XXI is a Hamilton, Bermuda-based oil and natural gas exploration and production company.

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