Energy XXI plans to sell $75 million perpetual convertible preferred stock during Dec. 7 week

By Rebecca Melvin

New York, Dec. 1 - Energy XXI (Bermuda) Ltd. plans to price $75 million of convertible perpetual preferred stock, or 750,000 shares at $100 a share, during the Dec. 7 week, with talk on the terms expected to emerge in the next couple of days, a syndicate source said Tuesday.

Talk on the registered, off-the shelf deal should come out in the middle of marketing, the syndicate source said.

There is a greenshoe for up to 75,000 additional preferred shares.

Energy XXI also plans to price 90 million shares of common stock, with a greenshoe of 13.5 million additional shares.

UBS Investment Bank and Credit Suisse Securities (USA) LLC are joint bookrunners for the offerings.

Proceeds from both offerings are expected to be used to fund previously announced acquisitions.

The convertibles are non-callable until Dec. 15, 2014 and then provisionally callable if the daily volume-weighted average price of the common stock is 150% of the conversion price for at least 20 out of 30 consecutive trading days.

Energy XXI is a Hamilton, Bermuda-based oil and natural gas exploration and production company, with properties in the U.S. Gulf of Mexico.

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