Independent oil and gas company Energy XXI (Bermuda) Ltd said its offering of 90 million common shares would be priced at $1.90 apiece, generating funds to buy assets from a unit of Mitsui & Co Ltd.
The offer price represents a discount of 4 percent to the stock's Tuesday closing price of $1.98. Shares of the company dropped 6 percent to $1.85 in morning trade Wednesday on Nasdaq.
The company said on Nov. 23 it would acquire certain oil and natural gas assets in the Gulf of Mexico from the Mitsui subsidiary, MitEnergy Upstream LLC, to increase its interest in the region.
The company also said its offering of 1 million of its 7.25 percent convertible preferred stock was priced at $100 per share.
Energy XXI expects net proceeds of about $162 million from the common stock offering and $97 million from the preferred offering, after deducting underwriting commissions.
The underwriters, UBS Investment Bank and Credit Suisse Securities, have a 30-day option to buy up to 13.5 million additional common and 100,000 preferred shares to cover overallotments, if any. (Reporting by Krishna N. Das in Bangalore; Editing by Mike Miller)