By Angela McDaniels
Tacoma, Wash., Sept. 21 - Energy XXI Gulf Coast, Inc. sold $60 million of 16% second-lien junior secured notes due June 15, 2014 in a private placement with some institutional investors, according to a company news release.
The 16% coupon on the new notes consists of 14% payable in cash and 2% payable in kind.
The investors will also receive 13,224,720 shares of the common stock of ultimate parent company Energy XXI (Bermuda) Ltd.
The placement will close concurrently with an exchange offer being held for the company's 10% senior notes due 2013, which is scheduled to end at midnight ET on Oct. 2.
The 16% notes issued in the private placement will be designated series B notes, and the 16% notes issued in the exchange offer will be designated series A notes. The two series will initially bear different Cusip numbers but will otherwise have the same terms.
The notes will be guaranteed by direct parent Energy XXI USA, Inc., Energy XXI (Bermuda) and each of the company's subsidiaries.
Energy XXI (Bermuda) is a Bermuda-based independent oil and natural gas exploration and production company. Energy XXI Gulf Coast is based in Houston.
| Issuer: | Energy XXI Gulf Coast, Inc.
|
| Guarantors: | Energy XXI USA, Inc., Energy XXI (Bermuda) and each of the company's subsidiaries
|
| Issue: | Second-lien junior secured notes
|
| Amount: | $60 million
|
| Maturity: | June 15, 2014
|
| Coupon: | 16%; 14% payable in cash and 2% payable in kind
|
| Price: | Par
|
| Pricing date: | Sept. 21
|
| Settlement date: | Oct. 2
|
| Distribution: | Private placement
|
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