My perception is that EXXI is a cash machine. Any thoughts as to why they would need to raise $300 mil?
Energy XXI (Bermuda) Limited Announces Private Offering of $300 Million of Convertible Notes Due 2018
EXXI Cash Raise
Re: EXXI Cash Raise
I think they may be buying some properties offshore Asia or just wanting to get some cheap money while low interest rates last.
"The Company intends to apply the net proceeds from the sale of the Convertible Notes for general corporate purposes, which may include working capital, capital expenditures or acquisitions. Concurrently with the offering, one of the Company's wholly owned subsidiaries intends to repurchase up to $100 million of shares of the Company's common stock funded with borrowings under the revolving credit facility of Energy XXI Gulf Coast, Inc., the Company's wholly owned subsidiary."
"The Company intends to apply the net proceeds from the sale of the Convertible Notes for general corporate purposes, which may include working capital, capital expenditures or acquisitions. Concurrently with the offering, one of the Company's wholly owned subsidiaries intends to repurchase up to $100 million of shares of the Company's common stock funded with borrowings under the revolving credit facility of Energy XXI Gulf Coast, Inc., the Company's wholly owned subsidiary."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EXXI Cash Raise
COVERAGE INITIATED: Energy XXI (EXXI) initiated by MLV & Co. Initial rating Buy. 11/22 04:38 AM
PT is $40.
PT is $40.
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bearcatbob
Re: EXXI Cash Raise
It is my sincere hope that EXXI does not go wandering off to Asia. First, they seem to have just recently straightened out their operations domestically. I would like to see a solid year of domestic success to make me feel better about their operational skills. Second, IMO oil properties in remote locations never seem to return appropriate value to shareholders.dan_s wrote:I think they may be buying some properties offshore Asia or just wanting to get some cheap money while low interest rates last.
"The Company intends to apply the net proceeds from the sale of the Convertible Notes for general corporate purposes, which may include working capital, capital expenditures or acquisitions. Concurrently with the offering, one of the Company's wholly owned subsidiaries intends to repurchase up to $100 million of shares of the Company's common stock funded with borrowings under the revolving credit facility of Energy XXI Gulf Coast, Inc., the Company's wholly owned subsidiary."
EXXI has a great record of doing "deals" and IMO a shoddy record of operational performance. IMO the very last thing they need to do is to wander off to Malaysia.
Bob