New Issue: Energy XXI upsizes to $750 million, six-year notes price at par to yield 10%

By Paul A. Harris

St. Louis, May 24 - Energy XXI Gulf Coast, Inc. priced an upsized $750 million issue of six-year senior notes (Caa2/CCC) at par to yield 10% on Thursday, according to an informed source.

The yield was printed on the tight end of the 10% to 10¼% price talk.

The Regulation D/Regulation S with registration rights private placement was upsized from $700 million.

Jefferies & Co., BNP Paribas and RBS Greenwich Capital were joint lead placement agents and joint bookrunners.

Proceeds, in addition to a draw upon the company's first lien revolver, will be used to fund the previously announced acquisition of certain oil and natural gas properties in the Gulf of Mexico from Pogo Producing Co. and to repay its second lien revolver in full.

The issuer is a subsidiary of Houston-based Energy XXI (Bermuda) Ltd.

Issuer:	Energy XXI Gulf Coast, Inc.
Amount:	$750 million (increased from $700 million)
Maturity:	June 15, 2013
Security description:	Senior notes
Lead placement agents:		Jefferies & Co., RBS Greenwich Capital, BNP Paribas
Co-placement agents:	BMO Capital Markets, Capital One Southcoast, Natexis Bleichroeder
Coupon:	10%
Price:	Par
Yield:	10%
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2010, then at 105.0, 102.50, par on and after June 15, 2012
Equity clawback:	Until June 15, 2010 for 35% at 110.0
Change of control put:	101.0
Trade date:	May 24
Settlement date:	June 8
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC
Distribution:	Regulation D/Regulation S with registration rights
Price talk:	10% to 10¼%

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