Energy XXI sets Wednesday call for $1.25 billion second lien notes

By Paul A. Harris

Portland, Ore., March 3 – Energy XXI Gulf Coast, Inc. will launch a $1.25 billion offering of five-year senior secured second lien notes via an investor conference call scheduled to begin at 11 a.m. ET on Wednesday, according to a market source.

The deal is set to price later this week.

Credit Suisse, Deutsche Bank, Imperial Capital, Wells Fargo Securities LLC, Citigroup Global Markets, Jefferies LLC, RBS and UBS Investment Bank are the joint bookrunners.

The bonds will be callable after two years at par plus 75% of the coupon.

Standard & Poor’s downgraded the Energy XXI’s corporate credit rating to B- from B and assigned a BB+ rating to the new notes.

The agency said the downgrade was in response to the increased leverage resulting from the new notes.

The Houston-based independent exploration and production company plans to use the proceeds to repay its revolver and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.