September 8, 2009 (FinancialWire) — Energy XXI Gulf Coast, Inc. announced it has commenced an exchange offer and consent solicitation in respect of its 10% senior notes due 2013.

The company has commenced an offer to exchange up to $360 million principal amount outstanding senior notes properly tendered (and not validly withdrawn) and accepted by the company for its newly issued 16% Second Lien Junior Secured notes due 2014 (the “Second Lien Notes), subject to proration and reduction to $311 million principal amount of senior notes, depending on the aggregate principal amount of Second Lien notes sold in a concurrent private placement.

In conjunction with the exchange offer, the company is also soliciting consents from holders of the senior notes to certain proposed amendments (the “Proposed Amendments) to the indenture under which the senior notes were issued, which, if effected, would modify certain of the restrictive covenants in that indenture in order to permit the issuance of the Second Lien Notes. A tender of senior notes by any holder in the exchange offer will also constitute a consent by such holder in favor of the Proposed Amendments. The adoption of Proposed Amendments requires the consents (the “Requisite Consents) of holders of a majority in principal amount of senior notes not held by the company and its affiliates.

In exchange for each $1,000 principal amount of senior notes properly tendered (and not validly withdrawn) and accepted by the company: (i) by 5: 00 p.m., New York City time, on September 18, 2009 (such time and date, as the same may be extended, the “Early Tender Date), participating holders of senior notes will receive $800 principal amount of Second Lien Notes, subject to proration (Total Consideration), and  after the Early Tender Date but prior to Midnight, New York City time, on October 2, 2009 (such time and date, as the same may be extended, the “Expiration Date), participating holders will receive $750 principal amount of Second Lien Notes, subject to proration (Exchange Consideration). Tendered senior notes (and delivered consents) may be withdrawn prior to 5: 00 p.m., New York City time, on September 18, 2009, unless extended.

The company has received indications from holders of an aggregate principal amount of approximately $345 million of senior notes of their intent to participate in the tender.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.