Energy XXI subsidiary prices tender offer for 16% second-lien notes

By Angela McDaniels

Tacoma, Wash., Dec. 15 - Energy XXI (Bermuda) Ltd. subsidiary Energy XXI Gulf Coast, Inc. determined that it will pay $1,140.76 per $1,000 principal amount of notes in the tender offer for its 16% second-lien junior secured notes due 2014.

This amount includes an early participation payment of $30.00 for each note tendered by the early participation payment deadline, which is 5 p.m. ET on Dec. 16.

Holders will also receive accrued interest.

The company set the price at 2 p.m. ET on Dec. 15 by reference to a fixed spread of 50 basis points over the bid-side yield of the 1 1/8% Treasury due June 30, 2011, according to a company news release.

The offer began Nov. 29 and will end at midnight ET on Dec. 30.

The offer is subject to the consummation of the acquisition of assets from Exxon Mobil Corp. and a private placement of debt securities. The offer is not subject to the receipt of any minimum amount of tenders.

RBS Securities Inc. (877 297-9832 or call collect 203 897-6145) and UBS Investment Bank (888 719-4210 or call collect 203 719-4210) are the dealer managers. D.F. King & Co., Inc. (888 628-1041) is the information agent.

Energy XXI is a Hamilton, Bermuda-based oil and natural gas exploration and production company.

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