Energy XXI to swap common stock for $7.2 million of 7.25% convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 7 - Energy XXI (Bermuda) Ltd. agreed on Oct. 6 to issue common stock in exchange for $7.2 million of its 7.25% convertible perpetual preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The number of shares of common stock to be issued will be based on the conversion ratio plus a premium and accrued interest.

Specifically, the company will issue a number of shares equal to the sum of:

• The number of preferreds, which is 72,000, multiplied by 8.77192;

• The number of preferreds multiplied by a fraction whose numerator is $19.00 and denominator is the arithmetic average of the daily volume-weighted average price of the common stock for the five consecutive trading days ending on Oct. 12; and

• The dollar amount of accrued dividends to Oct. 13 divided by the average VWAP price.

The exchange is expected to close on Oct. 14.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.