Energy XXI unit gets tenders for 98% of 16% notes by early deadline

By Marisa Wong

Madison, Wis., Dec. 17 - Energy XXI (Bermuda) Ltd. said that as of 5 p.m. ET on Dec. 16, the early participation payment deadline of subsidiary Energy XXI Gulf Coast, Inc.'s tender offer for its 16% second-lien junior secured notes, $219.8 million of the 16% notes had been tendered.

The subsidiary began a cash tender offer for any and all of the 16% notes on Nov. 29. The offer is scheduled to expire at midnight ET on Dec. 30.

The principal amount of notes tendered by the early participation deadline represents 98% of the total amount of 16% notes outstanding.

The company said it will pay $1,140.76 per $1,000 principal amount of notes tendered by the early participation deadline. This amount includes an early participation payment of $30.00.

Holders who tender their notes after the early participation deadline but before the expiration date will receive the tender offer consideration of $1,110.76, which is equal to the total consideration less the early participation payment.

The company said it will also pay accrued interest.

As previously reported, the offer is subject to the settlement 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 203 897-6145) and UBS Investment Bank (888 719-4210 or 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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