W&T Offshore Inc. closed its previously announced offering of $275 million in aggregate principal amount of 11.75% senior second lien notes due 2026 par in a private offering, the company said on Jan. 30.

W&T intends to use the net proceeds of the offering, along with cash on hand, to fund the redemption of all the company’s 9.75% senior second lien notes due 2023.

Tracy W. Krohn, chairman and CEO, said the company considered a number of alternatives to address its 2023 notes, including full repayment.

“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,” Krohn said. “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.”

The new notes also give the company more liquidity to potentially fund higher return accretive capital projects and acquisitions in the near term, he said.

“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,” he said.

W&T Offshore Inc. is an independent oil and natural gas producer active in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico.