Energy XXI greenshoe brings 3% convertibles issue to $400 million

By Jennifer Chiou

New York, Nov. 22 - Energy XXI (Bermuda) Ltd. said in an 8-K filing with the Securities and Exchange Commission that the full exercise of the $50 million over-allotment option brought its upsized $350 million issue of five-year convertible notes to $400 million overall.

The notes priced after the market close on Nov. 18 at par to yield 3% with an initial conversion premium of 47.5%.

Net proceeds came to $390.7 million, after deducting fees and estimated expenses, the filing added.

As reported, the Rule 144A offering was initially talked at $300 million in size. The greenshoe 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.

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.

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