Moody's gives Energy XXI notes B3

Moody's Investors Service said it assigned a B3 rating to Energy XXI Gulf Coast, Inc.'s announced $500 million senior unsecured notes offering.

Net proceeds of $492 million from the notes will be used to repay the outstanding balance under its revolving credit facility.

Energy XXI's other ratings and stable outlook remained unchanged.

"The note offering represents a terming-out of the revolver debt and is leverage neutral," Moody's vice president Saulat Sultan said in a news release. "While financial flexibility is enhanced, the production growth profile and share repurchase program remain key concerns."

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