2 Nov 2011capital raising announcement● NeutralMajor
On October 28, 2011 PXP agreed to put its Gulf of Mexico deepwater assets (including Lucius and Phobos) into a subsidiary, Plains Offshore Operations Inc., which would sell $450 million of 8% convertible preferred stock with warrants to EIG funds. PXP would keep 80% of the common equity and EIG 20%, with closing expected in Q4 2011. This is a financing and partial stake sale rather than the full sale of the deepwater assets that was being marketed since September 2010; the warrants cover up to 9,121,000 shares at $20.00.