W&T Offshore Closes $275mn Senior Second Lien Notes Offering

(W&T Offshore, 30.Jan.2023) — W&T Offshore, Inc. (NYSE: WTI) closed on its previously announced offering of $275mn in aggregate principal amount of 11.75% Senior Second Lien Notes (the “notes”) due 2026 at par in a private offering that is exempt from registration under the Securities Act of 1933, as amended.

The company intends to use the net proceeds of the offering, along with cash on hand, to fund the redemption of all of the company’s 9.75% Senior Second Lien Notes due 2023 (the “Existing Second Lien Notes”). On the closing date of the offering of the notes, the company satisfied and discharged the indenture governing the Existing Second Lien Notes.

Tracy W. Krohn, Chairman and Chief Executive Officer, commented, “As we have discussed previously, we considered a number of alternatives with regard to our 2023 notes including full repayment of the notes. Our focus with all of the options reviewed was not only to significantly reduce debt but also to improve the balance sheet going forward and preserve financial flexibility. Ultimately we decided that using our substantial cash balance sheet to pay off half of these notes, significantly reduce interest payments and issue new notes with similar terms but with a shorter tenure, was our best path forward as it also allows us to have more liquidity to potentially fund higher return accretive capital projects and acquisitions in the near term. We continue to see a number of attractive acquisition opportunities in our core focus area and have significant financial resources and flexibility to act quickly when we identify the best opportunities for W&T.”

The notes and the related guarantees have not been and will not be registered under the Securities Act or any other securities laws, and the notes and the related guarantees may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. The notes and the related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in the United States under Rule 144A and to non-U.S. investors outside the United States pursuant to Regulation S.

This press release is being issued for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a sale of the notes, the related guarantees, or any other securities, nor does it constitute an offer to sell, a solicitation of an offer to buy or a sale in any jurisdiction in which such offer, solicitation or sale is unlawful.