Energy XXI Ltd

Energy XXI Ltd terminated the registration of a class of securities, ending its reporting obligation for them.

listing compliance notice

Energy XXI Ltd terminated the registration of a class of securities, ending its reporting obligation for them.

listing compliance notice

The Bankruptcy Court confirmed Energy XXI's Chapter 11 plan on December 13, 2016, targeting an effective date by year-end. Under the plan, reorganized Energy XXI Gulf Coast becomes the new parent holding substantially all of the group's assets, revolving-credit claims convert into a new three-year exit facility, and Energy XXI Ltd's existing common and preferred equity is wiped out entirely - marking the effective end of the Bermuda parent entity that had built the company from a single Gulf of Mexico shelf operator into a $3.6 billion-debt, multi-billion-dollar producer over eight years, undone by the leverage taken on for the 2014 EPL acquisition just before oil prices collapsed.

debt financing

Energy XXI and its second lien noteholders finalized the recovery terms of the reorganization plan: unsecured trade and general claims got modestly better payouts, and the equity split in the reorganized company was set at 87.8% for second lien noteholders, small slices for unsecured noteholders, and 11.6% reserved for a creditor trust - with existing common and preferred stock still receiving nothing.

debt financing

Energy XXI Ltd's exchange filed to remove a class of its securities from listing.

listing compliance notice

Nasdaq moved to delist Energy XXI's stock (EXXI) following the bankruptcy filing and its prior minimum-bid-price violation; the company chose not to appeal, and its shares were expected to move to the thinly-traded OTC Pink market.

listing compliance notice

Energy XXI Ltd, Energy XXI Gulf Coast, EPL Oil & Gas and other subsidiaries filed for Chapter 11 bankruptcy protection on April 14, 2016 in the Southern District of Texas (Case No. 16-31928), backed by a pre-negotiated Restructuring Support Agreement with holders of its 11.000% second lien notes. Under the planned reorganization, existing common and preferred stock would be wiped out entirely, with the second lien noteholders receiving 100% of the new company's equity - the culmination of the borrowing-base and covenant crisis that had been building since the EPL-driven leverage peak in mid-2014.

bankruptcy or receivership

The crisis widened into a broad default wave: Energy XXI Gulf Coast missed interest on both its 6.875% notes and 11.000% second lien notes, and EPL again missed interest on its 8.25% notes, with lenders granting only a one-month waiver while slashing the revolving facility's borrowing base from $500 million to $377.7 million - effectively eliminating any remaining borrowing capacity beyond existing letters of credit.

debt financing

Subsidiary EPL Oil & Gas missed the February 15, 2016 interest payment on its 8.25% notes - Energy XXI's first actual payment default - and lenders granted only a brief waiver through mid-March, meanwhile barring new borrowings under the credit facility and requiring loan proceeds to be swept into a lender-controlled account.

debt financing

Nasdaq warned Energy XXI (EXXI) that its stock had traded below the $1.00 minimum bid price for 30 straight days, starting a 180-day clock to regain compliance by August 2016.

listing compliance notice

With EBITDA collapsing alongside oil prices, Energy XXI's lenders dramatically loosened the secured-debt leverage covenant - allowing it to rise from a suspended level to 3.75x, then to 4.75x by March 2016 and as high as 5.25x by mid-2016 - rather than the company actually deleveraging, while holding the borrowing base flat at $500 million.

debt financing

Energy XXI disclosed it would restate four years of annual financials (FY2011-FY2014) and multiple quarters after finding its hedge-accounting documentation didn't meet the technical requirements for cash-flow-hedge treatment, forcing derivative gains and losses to be reclassified from other comprehensive income into earnings. The company said the restatement was a non-cash, presentation-only issue with no effect on liquidity, EBITDA or debt covenants - but it was still a multi-year accounting control failure surfacing just as the company's finances were under real strain.

financial restatement

The Grand Isle Gathering System sale-leaseback closed for $245 million, locking Energy XXI into a new fixed obligation averaging $40.5 million a year in lease payments over the 11-year term - a real ongoing cash drain layered onto an already strained balance sheet just as oil prices kept falling.

debt financing

Under mounting cash pressure, Energy XXI agreed to sell its Grand Isle Gathering System - Gulf of Mexico shelf pipeline and onshore processing infrastructure - to CorEnergy Infrastructure Trust subsidiary Grand Isle Corridor for $245 million plus assumption of a $12.5 million abandonment liability, immediately leasing it back for 11 years so operations continue uninterrupted - a sale-leaseback raising cash by monetizing core infrastructure rather than new financing.

material agreement

Energy XXI closed the $1.45 billion second-lien notes offering, netting about $1.35 billion at a steep discount - expensive but critical financing used to term out the revolving facility that was otherwise facing shrinking borrowing-base capacity.

debt financing

Energy XXI priced $1.45 billion of new 11.000% senior secured second lien notes at a 12.000% yield to maturity - by far its most expensive financing yet, a stark jump from the 6.875% it paid just ten months earlier, underscoring how quickly its cost of capital had deteriorated as oil prices fell.

debt financing

Energy XXI's lenders sharply tightened the credit agreement: dividends to the parent were cut off (with a narrow carve-out to distribute the Grand Isle gathering system), asset-sale proceeds now required lender consent and had to be held in pledged accounts, and - most strikingly - the facility itself was set to shrink from roughly $1.5 billion to just $500 million once further conditions were met, with a new intercompany loan mechanism to funnel cash to EPL. Barely nine months after the EPL deal pushed borrowing capacity to its all-time peak, the credit facility was already being unwound.

debt financing

With oil prices sliding, Energy XXI's board named director James LaChance interim Chief Strategic Officer specifically to negotiate with lenders and noteholders on alternative financing to fix the company's leverage and debt maturities - paying him $200,000/month plus a success fee of up to $6 million if he landed a financing deal, an unmistakable sign the board saw a real refinancing crisis ahead.

material agreement

As oil prices began falling in late 2014, Energy XXI needed its lenders to loosen its leverage covenant from 3.5x to 4.25x EBITDA (stepping back down to 4.0x by mid-2015), having already required a waiver for the prior two quarters - the first sign of covenant strain since the EPL acquisition pushed leverage to its peak.

debt financing

The EPL Oil & Gas acquisition closed June 3, 2014, and Energy XXI's credit facility borrowing base was pushed to an all-time high of $1.5 billion, including a $475 million subfacility EPL immediately drew to refinance its own existing debt. This marked the peak of Energy XXI's leveraged growth-by-acquisition strategy - built up over four years of cheap credit, just as oil prices were about to turn down sharply in the second half of 2014.

asset acquisition disposition

Energy XXI Gulf Coast closed the $650 million 6.875% notes offering, completing the bond financing for the EPL acquisition just before it closed.

debt financing

Energy XXI Gulf Coast priced $650 million of 6.875% senior unsecured notes due 2024 - upsized from an originally planned $300 million - to help fund the EPL Oil & Gas acquisition.

material agreement

Energy XXI's credit facility borrowing base rose again to $1.2 billion (from $1.0875 billion), and the agreement was updated to accommodate the 7.50% notes and expand unsecured-debt capacity - building balance-sheet room ahead of the EPL Oil & Gas acquisition.

debt financing

Energy XXI agreed to acquire EPL Oil & Gas in a cash-and-stock merger, with EPL shareholders able to choose between roughly $39.00 cash per share or Energy XXI stock (pro-rated to a 65% cash / 35% stock overall mix), expanding its board to seven directors to add an EPL representative - a major scale-up of its Gulf of Mexico shelf position just as oil prices were near their post-2010 highs.

business combination

Energy XXI raised $400 million (after an over-allotment exercise) through 3.0% convertible senior notes due 2018 - its cheapest financing yet, netting about $390.7 million.

capital raising announcement

Energy XXI's credit facility borrowing base jumped again, to $1.0875 billion from $850 million, alongside minor technical adjustments to LIBOR loan mechanics.

debt financing

Energy XXI Gulf Coast raised $500 million more via 7.50% senior unsecured notes due 2021 - its lowest coupon yet, extending its string of progressively cheaper refinancings.

debt financing

Energy XXI hit a high-water mark on credit terms: total facility commitments rose to $1.7 billion, the borrowing base to $850 million, interest margins fell again, maturity was pushed out four years to April 2018, and the unsecured-debt basket tripled to $750 million - reflecting the company's peak financial strength before the industry's mid-2010s downturn.

debt financing

Energy XXI's credit facility borrowing base was raised again, to $825 million, reflecting the growing value of its reserve base.

debt financing

Energy XXI loosened several credit-agreement terms: easier dividend/distribution rules, letting its own petroleum engineers (rather than an independent firm) prepare the annual reserve report subject only to third-party audit, and removing the minimum commodity-hedging requirement on proved developed producing reserves - trading some conservatism for flexibility just as the company's asset base (and storm exposure) was growing, with the required hurricane-season cash reserve doubled to $50 million in acknowledgment of that risk.

debt financing

Energy XXI refreshed its whole credit facility with a Second Amended and Restated First Lien Credit Agreement: the borrowing base rose to $750 million, interest margins dropped, and all references to the 16% second-lien debt were deleted because it had been fully retired - confirming the crisis-era high-cost debt was gone. The new agreement also raised the cap on dividend payments up to the parent (for preferred stock payments) to $17 million a year and let the company pay up to $50 million annually to a new Bermuda-based captive insurer.

debt financing

Energy XXI Gulf Coast formally issued the $250 million of 7.75% senior unsecured notes due 2019 under a new indenture, completing that refinancing round.

debt financing

Energy XXI Gulf Coast raised another $250 million, this time at a lower 7.75% rate via senior unsecured notes due 2019, to repay revolver debt and buy back its remaining 10% Senior Notes due 2013 - continuing to refinance its capital structure at progressively cheaper rates as credit markets improved.

debt financing

The Exxon acquisition closed on December 17, 2010 for $1.012 billion, adding about 20,000 boe/day of production (53% oil), roughly 66 million barrels of proved and probable reserves, and 130,853 net offshore acres - a transformational addition to Energy XXI's Gulf of Mexico shelf position.

asset acquisition disposition

Energy XXI Gulf Coast formally issued the $750 million of 9.25% senior unsecured notes due 2017 under a new indenture, completing the bond financing behind the Exxon acquisition.

debt financing

Energy XXI Gulf Coast priced $750 million of new 9.25% senior unsecured notes due 2017 to help fund the Exxon acquisition and pay down revolver borrowings.

debt financing

To finance the Exxon acquisition, Energy XXI's lenders agreed to massively expand its credit facility - revolving commitments to $925 million, borrowing base to $700 million, letter-of-credit capacity to $300 million, maturity extended four years - and to permit up to $1 billion of additional unsecured debt to fund the deal and retire the remaining 16% and 10% notes, contingent on the Exxon deal closing.

debt financing

Energy XXI agreed to its largest deal yet: a $1.012 billion cash purchase of nine shallow-water Gulf of Mexico shelf fields from ExxonMobil and Mobil affiliates, sitting between its existing South Timbalier and Main Pass operations. The deal is to be financed with a $450 million term loan, $350 million of revolver borrowings and cash on hand, and comes with a roughly $200 million estimated plugging-and-abandonment liability and a $225 million standby letter of credit to cover it - a transformational scale-up that also loads the company with major legacy decommissioning obligations.

material agreement

Lenders waived credit-agreement covenants to let Energy XXI Gulf Coast use about $133 million of the October equity-raise proceeds to redeem its 16% Second Lien Notes (by March 2011) and, once those were retired, its 10% Senior Notes (by September 2011) - the mechanics behind the ongoing high-cost-debt payoff.

debt financing

Energy XXI launched another round of equity raises - 9.5 million common shares plus $200 million of new convertible preferred stock - earmarked to buy back $119 million of its expensive 16% Second Lien Notes and repay $91.5 million of revolver debt, continuing to unwind the costly 2009 crisis-era financing.

capital raising announcement

Confirming the recovery from its 2009 crisis-era lows, Energy XXI's credit facility borrowing base was back up to $350 million, and lenders amended the agreement to let Gulf Coast fund up to $25 million to induce early conversion of the 7.25% preferred stock and up to $9 million a year for preferred dividends - directly financing the deleveraging program underway.

debt financing

Energy XXI expanded the preferred-stock conversion program, exchanging another 347,500 preferred shares for common stock, cutting the outstanding preferred balance to 680,500 shares.

capital raising announcement

Energy XXI launched concurrent public offerings of 90 million common shares and $75 million of convertible preferred stock to fund the MitEnergy acquisition, alongside underwriter over-allotment options.

capital raising announcement

Even while restructuring its balance sheet, Energy XXI agreed to buy Gulf of Mexico shelf interests from Mitsui subsidiary MitEnergy for $283 million (about $263 million net after adjustments) - mostly non-operated stakes in the same fields it had bought from Pogo Producing in 2007, adding 8,000 boe/day of production (77% oil) with hedges locked in at $73.46/barrel, to be funded with new equity, cash and bank debt.

material agreement

Energy XXI completed the exchange, swapping $347.5 million of its 10% Senior Notes for $278 million of new 16% Second Lien Notes and raising $60 million more of those notes plus 13.2 million new shares in a concurrent private placement - cutting total face debt somewhat but replacing cheap 10% debt with expensive 16% secured paper, a costly but necessary trade during the crisis.

debt financing

With its first-lien borrowing base already cut to $199 million, Energy XXI amended its credit agreement to clear the way for a distressed debt exchange: swapping at least $311 million of its existing 10% Senior Notes for new 16% Second Lien Notes at a discount (up to $0.80 on the dollar), raising $50 million of fresh cash, and using $41 million of it to pay down bank debt - a real deleveraging move forced by tightening credit conditions during the financial crisis.

debt financing

The next borrowing-base redetermination cut Energy XXI's revolving credit facility sharply, from $400 million to $240 million, as the 2008-2009 financial crisis and collapsing oil prices hit lender risk appetite - the company expected to end up fully drawn with only $61 million of cash on hand, a real tightening of its liquidity cushion.

debt financing

Energy XXI's semi-annual borrowing-base redetermination kept its revolving credit facility at $400 million, with $280 million drawn and $388 million still available (excluding a $12 million slice Lehman Brothers had committed but, post-collapse, couldn't fund) plus $102 million cash on hand - comfortable liquidity heading into the financial crisis.

debt financing

Energy XXI declared its first-ever quarterly dividend, $0.005 per share, marking the company's transition to returning cash to shareholders.

dividend declaration