By Rebecca Melvin
New York, Oct. 29 - Energy XXI (Bermuda) Ltd. priced an upsized $250 million of convertible perpetual preferred stock at par of $250 a share with a dividend of 5.625% and an initial conversion premium of 22.5%, according to a prospectus.
The preferred offering, which was originally going to be $200 million in size, came at the rich end of talked terms, which was for a dividend of 5.625% to 6.125% and a premium of 17.5% to 22.5%.
Energy XXI also priced $249 million, or 1 million shares, of common stock, at $20.75 per share.
The preferred offering has a greenshoe of up to $37.5 million of additional shares, which was upsized from $30 million, and the common stock offering has a greenshoe for up to 1.8 million of additional shares.
UBS Securities LLC, BNP Paribas Securities Corp. and RBS Securities Inc. were the joint bookrunners of the preferred offering, and UBS Securities and Credit Suisse were the joint bookrunners of the stock offering.
The preferreds are non-callable for three years and then provisionally callable subject to a price hurdle of 130% over the conversion price.
Proceeds will be used to redeem $119.7 million of its 16% second-lien junior secured notes due 2014, and $91.5 million will be used to repay amounts outstanding under a revolver.
Remaining proceeds will be used for general corporate purposes, which may include further market purchases of the 16% notes due 2014, repayment of other debt, accelerating development of existing reserves or acquisitions.
Energy XXI is a Hamilton, Bermuda-based oil and natural gas exploration and production company with U.S. Gulf of Mexico properties.
| Issuer: | Energy XXI (Bermuda) Ltd.
|
| Issue: | Perpetual convertible preferred stock
|
| Amount: | $250 million, upsized from $200 million
|
| Greenshoe: | $37.5 million, upsized from $30 million
|
| Maturity: | Perpetual
|
| Concurrent offering: | $249 million of common stock at $20.75 per share
|
| Bookrunners: | UBS Securities LLC, BNP Paribas Securities Corp., RBS Securities Inc.
|
| Dividend: | 5.625%
|
| Price: | Par, $250 per share
|
| Yield: | 5.625%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $25.42
|
| Conversion ratio: | 9.8353
|
| Call option: | On Dec. 15, 2013, then provisionally callable if shares exceed 130% of conversion price
|
| Price talk: | 5.625%-6.125%, up 17.5%-22.5%
|
| Pricing date: | Oct. 28
|
| Settlement date: | Nov. 3
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: EXXI
|
| Stock reference price: | $20.75
|
| Market capitalization: | $1.08 billion
|
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