By Paul A. Harris
St. Louis, Dec. 3 - Energy XXI Gulf Coast, Inc. priced an upsized $750 million issue of seven-year senior notes (Caa1/B/B) at par to yield 9¼% on Friday, according to market sources.
The yield printed 12.5 basis points beyond the wide point of the 9% area price talk.
RBS Securities Inc., UBS Investment Bank and BNP Paribas Securities Corp. were the joint bookrunners for the issue, which was upsized from $700 million.
Proceeds, together with a draw on the company's revolver and cash on hand from recent equity offerings, will be used to finance the purchase of certain shallow-water Gulf of Mexico shelf oil and natural gas interests from ExxonMobil and to repurchase or redeem its 16% second-lien junior secured notes due 2014.
The issuer is a Houston-based oil and gas exploration and production company.
| Issuer: | Energy XXI Gulf Coast, Inc.
|
| Amount: | $750 million, increased from $700 million
|
| Maturity: | Dec. 15, 2017
|
| Securities: | Senior notes
|
| Bookrunners: | RBS Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp.
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 691 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15 2014, then callable at 104.63
|
| Equity clawback: | 35% at 109.25 until Dec. 15, 2013
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B
|
| Fitch: B
|
| Distribution: | Rule 144A
|
| Price talk: | 9% area
|
| Marketing: | Roadshow
|
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