Energy XXI greenshoe lifts convertible preferreds to $110 million

By Marisa Wong

Milwaukee, Dec. 15 - Energy XXI (Bermuda) Ltd. announced that the underwriters of its offering of 7.25% convertible perpetual preferred stock exercised the over-allotment option in full, increasing the size of the offering to 1.1 million shares. The convertible preferred offering raising $110 million was completed on Tuesday, according to a news release.

Energy XXI sold the 1.1 million shares of convertible preferreds at $100 per share.

The company also sold 90 million shares of common stock at $1.90 per share.

Energy XXI originally priced an upsized $100 million of convertible preferreds at 7.25% with an initial conversion premium of 20%.

Net proceeds from these offerings totaled $268.7 million. The company intends to use the net proceeds to fund its previously announced acquisition of certain Gulf of Mexico shelf oil and natural gas interests from MitEnergy Upstream LLC, a subsidiary of Mitsui & Co., Ltd.

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

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

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