Energy XXI exchanges common stock for $7.2 million 7.25% convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 14 - Energy XXI (Bermuda) Ltd. issued 687,084 shares of common stock in exchange for $7.2 million of its 7.25% convertible perpetual preferred stock, according to a company news release.

The company reached the exchange agreement with the holders on Oct. 6.

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

Specifically, the company issued 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 $25.40, the arithmetic average of the daily volume-weighted average price of the common stock for the five trading days ended on Oct. 12; and

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

The exchange closed on Oct. 14.

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

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