By Rebecca Melvin
New York, Nov. 19 - Energy XXI (Bermuda) Ltd. priced an upsized $350 million of five-year convertible notes after the market close Monday at par to yield 3% with an initial conversion premium of 47.5%, according to a syndicate source.
The Rule 144A offering was initially talked at $300 million in size. There is also a $50 million greenshoe, which was upsized from $45 million.
Pricing came at the midpoint of 2.75% to 3.25% coupon talk and at the cheap end of 47.5% to 52.5% premium talk.
Concurrently with the deal, Energy XXI subsidiaries repurchased about $76 million shares of common stock, or 2,776,200 shares at $27.39 each.
Proceeds of the bonds are earmarked for general corporate purposes, which may include working capital, capital expenditures or acquisitions.
Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the joint bookrunners of the notes, which are non-callable but have takeover protection and net share settlement.
Energy XXI is a Hamilton, Bermuda-based oil and natural gas exploration and production company.
| Issuer: | Energy XXI (Bermuda) Ltd.
|
| Issue: | Convertible notes
|
| Amount: | $350 million, upsized from $300 million
|
| Greenshoe: | $50 million, upsized from $45 million
|
| Maturity: | Dec. 15, 2018
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 47.5%
|
| Conversion price: | $40.40
|
| Conversion ratio: | 24.7523 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Call spread: | No
|
| Takeover protection: | Yes
|
| Net share settlement: | Yes
|
| Price talk: | 2.75%-3.25%, up 47.5%-52.5%
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 22
|
| Stock symbol: | Nasdaq: EXXI
|
| Stock reference price: | $27.39 at close Nov. 18
|
| Distribution: | Rule 144A
|
| Market capitalization: | $2.08 billion
|
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