NEW ORLEANS, Oct. 15, 2012 (GLOBE NEWSWIRE) -- EPL Oil & Gas, Inc. ("EPL" or the "Company") (NYSE:EPL) announced today that it intends to offer for sale in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"), to eligible purchasers $250 million in aggregate principal amount of 8.25% senior unsecured notes due 2018 (the "Senior Notes").
The net proceeds from the sale of Senior Notes will be deposited into escrow pending completion of the Company's previously announced acquisition from Hilcorp Energy GOM Holdings, LLC of 100% of the issued and outstanding member interests of Hilcorp Energy GOM, LLC, which owns certain shallow-water Gulf of Mexico shelf oil and natural gas interests (the "Hilcorp Acquisition"). Upon release of the net proceeds from escrow at the closing of the Hilcorp Acquisition, EPL will use those net proceeds to fund a portion of the purchase price for the Hilcorp Acquisition.
The Hilcorp Acquisition is expected to close in the first half of the fourth quarter, assuming all conditions to closing of the Hilcorp Acquisition have been satisfied. The private placement of Senior Notes is not a condition to the closing of the Hilcorp Acquisition. If the closing of the Hilcorp Acquisition does not occur on or prior to December 31, 2012, or if the purchase and sale agreement regarding the Hilcorp Acquisition is terminated at any time on or prior to December 31, 2012, EPL will be required to use the escrowed funds to redeem the Senior Notes at a price equal to 100% of the principal amount plus accrued interest to the redemption date.The offering of the Senior Notes is subject to market and other conditions and there can be no assurance that the offering will be consummated on the terms described above, or that the offering will be consummated at all.