Attached files
| file | filename |
|---|---|
| 8-K - Energy XXI Ltd | v200520_8k.htm |
| EX-1.2 - Energy XXI Ltd | v200520_ex1-2.htm |
| EX-5.1 - Energy XXI Ltd | v200520_ex5-1.htm |
| EX-5.2 - Energy XXI Ltd | v200520_ex5-2.htm |
| EX-3.1 - Energy XXI Ltd | v200520_ex3-1.htm |
| EX-1.1 - Energy XXI Ltd | v200520_ex1-1.htm |
Energy
XXI Prices $499 Million in Concurrent Offerings of
Common
Stock and 5.625%Convertible Perpetual Preferred Stock
HOUSTON –
Oct. 29, 2010 – Energy XXI (Bermuda) Limited (NASDAQ: EXXI) today announced the
pricing of its previously announced concurrent offerings of $249 million (12
million shares) of its common stock and $250 million (1 million shares) of
5.625% convertible perpetual preferred stock. The Company also
granted the underwriters a 30-day option to purchase up to 1.8 million
additional shares of its common stock and 150,000 additional shares of its
convertible preferred stock to cover over-allotments, if any. The
company had initially targeted gross proceeds of $400 million, but upsized the
offering based on investor demand. Both offerings are expected to
settle and close on Nov. 3, 2010, each subject to customary closing
conditions.
The
common stock offering was priced at $20.75 per share. The company
estimates that the net proceeds from the common stock offering will be
approximately $237 million, after deducting underwriting commissions, but before
expenses (or approximately $273 million, if the underwriters exercise their
over-allotment option to purchase additional shares of common stock in
full). The convertible preferred stock offering was priced at $250
per share. The company estimates that the net proceeds from the
convertible preferred stock offering will be approximately $246 million, after
deducting underwriting commissions, but before expenses (or approximately $283
million, if the underwriters exercise their over-allotment option to purchase
additional shares of convertible preferred stock in full). The
company intends to use $132.2 million of the net proceeds from these offerings
to redeem $119.7 million aggregate principal amount of its 16% Second Lien
Junior Secured Notes due 2014 and $91.5 million of the net proceeds to repay
amounts outstanding under its wholly owned subsidiary’s revolving credit
facility. The remainder of the net proceeds will be used for general corporate
purposes, which may include purchases of the 16% Second Lien Junior Secured
Notes due 2014 in the open market, repayment of other outstanding debt,
accelerating development of existing reserves or acquisitions.
UBS
Securities LLC and Credit Suisse Securities (USA) LLC acted as joint
book-running managers for the common stock offering, and UBS Securities LLC, BNP
Paribas Securities Corp. and RBS Securities Inc. acted as joint book-running
managers for the preferred stock offering. The offerings are being made only by
means of a prospectus and related prospectus supplements.
Copies of
the prospectus and related prospectus supplement for the common stock offering
may be obtained from UBS Securities LLC, Attn: Prospectus Dept., 299 Park
Avenue, New York, NY 10171, Telephone: 888-827-7275 and Credit Suisse Securities
(USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010,
800-221-1037.
Copies of
the prospectus and related prospectus supplement for the preferred stock
offering may be obtained from UBS Securities LLC, Attn: Prospectus Dept., 299
Park Avenue, New York, NY 10171, Telephone: 888-827-7275, BNP Paribas Securities
Corp., Convertible Desk, 787 Seventh Avenue, New York, NY 10019, Telephone:
(212) 471 6667, and RBS Securities Inc. Attn: Rene Mijne, 600 Washington
Boulevard, Stamford, CT 06901, Tel: 203-897-4677.
An
electronic copy of each of the prospectus supplements is available from the
Securities and Exchange Commission's website at www.sec.gov.
The
shares of common stock and convertible preferred stock are being offered
pursuant to an effective shelf registration statement that the Company
previously filed with the U.S. Securities and Exchange Commission. This press
release is not an offer to sell these securities and is not soliciting an offer
to buy these securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
Forward-Looking
Statements
All
statements included in this release relating to future plans, projects, events
or conditions and all other statements other than statements of historical fact
included in this release are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
in this press release relate to, among other things, the offering of the common
stock and convertible preferred stock and the expected use of proceeds from both
proposed offerings. These statements are based upon current expectations and are
subject to a number of risks, uncertainties and assumptions, including changes
in long-term oil and gas prices or other market conditions affecting the oil and
gas industry, reservoir performance, the outcome of commercial negotiations and
changes in technical or operating conditions, among others, that could cause
actual results, including project plans and related expenditures and resource
recoveries, to differ materially from those described in the forward-looking
statements. Energy XXI assumes no obligation and expressly disclaims any duty to
update the information contained herein except as required by law.
About
Energy XXI
Energy
XXI is an independent oil and natural gas exploration and production company
whose growth strategy emphasizes acquisitions, enhanced by its value-added
organic drilling program. The Company's properties are located in the U.S. Gulf
of Mexico waters and the Gulf Coast onshore. Seymour Pierce is Energy XXI's
listing broker in the United Kingdom.
Enquiries
of the Company
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Energy XXI
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Pelham Bell Pottinger
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Stewart
Lawrence
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James
Henderson
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Vice
President, Investor Relations and
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jhenderson@pelhambellpottinger.co.uk
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Communications
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Mark
Antelme
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713-351-3006
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mantelme@pelhambellpottinger.co.uk
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slawrence@energyxxi.com
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+44
(0) 20 7861 3232
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Seymour Pierce – UK AIM
Adviser
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Jonathan
Wright/
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Jeremy
Porter – Corporate Finance
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Richard
Redmayne – Corporate Broking
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Tel:
+44 (0) 20 7107 8000
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