Dallas, Texas 05/16/2014 (FINANCIALSTRENDS) –Energy XXI Gulf Coast, which is Energy XXI (Bermuda) Limited (NASDAQ:EXXI)’s operating subsidiary has announced pricing of the private placement of $650M of 6.875% senior-unsecured notes that are due in 2024. Its offering size was also increased to $650M from $300M. These 2024 Notes were sold-off at 100 percent of par to the yield 6.875% to the maturity. This offering is expected to now close on 27 May 2014, and is subject to all the customary closing conditions.
Energy XXI (Bermuda) Limited (NASDAQ:EXXI) intends to use a segment of net proceeds to repay all the indebtedness that is now outstanding under the revolving credit facility & the remainder to fund a section of the cash-consideration for Energy XXI’s pending-acquisition of the EPL Oil & Gas, Inc. If this EPL Acquisition is eventually not consummated, it intends to use all of remaining net-proceeds for the general corporate purposes. Consummation of this Offering is not actually conditioned on closing of its EPL Acquisition.
These 2024 Notes haven’t been registered under the SEA of 1933, and as amended / any of the state securities laws & unless they are so registered they might not be offered / sold in the U.S except pursuant to the exemption from/ in the transaction that is not subject to registration requirements of the existing Securities Act and the applicable state-securities laws.
What EXXI does
Energy XXI is independent oil & natural gas exploration and a production company and has operations that are concentrated in the U.S Gulf Coast & in the Gulf of Mexico. It is involved in acquiring, exploring and in development & the operation of oil & natural gas properties on- shore in Louisiana & Texas as well as offshore in Gulf of Mexico.As of 30 June 2012, it s estimated net proved reserves stood at 119.6M barrel of oil equivalent, of this 71% was oil & 68% was proved developed.