Published on 5/12/2014 in the Prospect News High Yield Daily.
New Issue: Energy XXI sells upsized $650 million 10-year senior notes at par to yield 6 7/8%
By Paul A. Harris
Portland, Ore., May 12 - Energy XXI Gulf Coast, Inc. priced a massively upsized $650 million issue of senior notes due March 15, 2024 (B3/B/) at par to yield 6 7/8%, according to a syndicate source.
The deal was upsized from $300 million.
The yield printed at the tight end of the 6 7/8% to 7% yield talk.
Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. were the joint physical bookrunners for the quick-to-market deal.
The Hamilton, Bermuda-based oil and natural gas exploration and production company plans to use the proceeds to fund the acquisition of EPL Oil & Gas, Inc. and to repay debt.
| Issuer: | Energy XXI Gulf Coast, Inc.
|
| Amount: | $650 million, increased from $300 million
|
| Maturity: | March 15, 2024
|
| Securities: | Senior notes
|
| Joint physical bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc.
|
| Bookrunning managers: | RBS Securities Inc., UBS Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Capital One Securities Inc., Deutsche Bank Securities Inc., ING Financial Markets LLC, Natixis Securities Americas LLC, Regions Securities LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC
|
| Co-managers: | Comerica Securities Inc., Fifth Third Securities Inc., ABN Amro Securities (USA) LLC, KeyBanc Capital Markets Inc., Santander Investment Securities Inc., SMBC Nikko Securities America Inc., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Iberia Capital Partners LLC, PNC Capital Markets LLC, Clarkson Capital Markets LLC, Miller Tabak & Co. LLC, Johnson Rice & Co. LLC, Raymond James & Associates Inc., Tudor Pickering Holt & Co. Securities Inc.
|
| Coupon: | 6 7/8%
|
| Price: | Par
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| Yield: | 6 7/8%
|
| Spread: | 424 bps
|
| First call: | March 15, 2019 at 103.438
|
| Equity clawback: | 35% at 106.875 until March 15, 2017
|
| Change-of-control put: | 101%
|
| Trade date: | May 12
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| Settlement date: | May 27
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| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 6 7/8% to 7%
|
| Marketing: | Quick to market
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