Thursday, Energy XXI Gulf Coast Inc. (EXXI) announced it has extended the expiration date of its previously announced exchange offer and consent solicitation of its 10% Senior Notes due 2013. The company also announced the results of the offer.
The expiration date is extended from October 7, 2009 to October 9, 2009, unless further extended.
The extension is expected to provide time to resolve comments received from the staff of the Securities and Exchange Commission on the company's application to qualify the proposed indenture governing the Second Lien Notes as per the rules.
The company had commenced an offer to exchange up to $347.50 million principal amount of outstanding senior notes properly tendered and accepted for its newly issued 16% Second Lien junior secured notes due 2014, subject to proration and reduction depending on the aggregate principal amount of second lien notes sold in a concurrent private placement.
Energy XXI, based in Hamilton, Bermuda, stated that in relation with the exchange offer, it has also commenced soliciting consents from holders of the senior notes to certain proposed amendments to the indenture. Once effected, this would modify some of the restrictive covenants in the indenture to permit the issuance of the second lien notes.
The second lien notes have not been registered under the Securities Act of 1933, as amended and may not be sold in the United States without registration or an applicable exemption from registration requirements.
The exchange offer was made, and the series A second lien notes were offered in reliance upon the exemption provided by the Securities Act.
EXXI is currently trading at $1.57 up $0.01 or 0.64%, on a volume of 0.311 million shares on the Nasdaq.
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