It looks like Energy XXI operating subsidiary Energy XXI Gulf Coast will be taking in significantly more money than anticipated from an offering of senior notes. The company has expanded the issue to $500 million, from the previously announced $300 million. This will be raised through the flotation of the notes in a private placement. The 7.50% notes are unsecured and mature in 2021.
Energy XXI said its share of the proceeds of the issue will be utilized to repay outstanding debt drawn from a revolving credit facility as well as for "general corporate purposes."
It expects the offering to close on Thursday.
At the end of its most recent quarter ended June 30, Energy XXI had nearly $1.4 billion in total debt and roughly $38 million in cash.
The article Key Energy XXI Subsidiary Upsizes Senior Notes Issue originally appeared on Fool.com.Fool contributor Eric Volkman has no position in Energy XXI, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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