Energy Partners Ltd., New Orleans, (NYSE: EPL) has concluded its strategic alternatives process without any definitive offers to buy the company. EPL plans a $200-million stock buyback, representing some 22% of outstanding and to sell select
properties for an estimated $125 million to reduce debt. The buyback is of up to 8.7 million common shares. Banc of America Securities LLC will fund the buyback, refinance the company’s bank credit facility, and refinance its 8.75% senior notes. The board has authorized additional buybacks up to $50 million during one year after the initial buyback. Richard A. Bachmann, EPL chairman and chief executive, says, “We approached 63 potential bidders for the company including 25 domestic oil and gas companies, 23 international oil and gas companies, and 15 financial sponsors. Of those approached, 14 parties expressed interest and executed a confidentiality agreement with EPL. Nine received a management presentation and had the opportunity to review additional information in our data room. However, although preliminary bids were received during a very thorough
process, no definitive offers resulted. “As always, we will continue to take actions that we believe are in the best interest of shareholders.” MacKenzie Partners Inc. is the information agent for both tender offers. Merrill Lynch Petrie Divestiture Advisors will assist in the property sales.