W&T Offshore Initiates Cash Tender Offer and Consent Solicitation

On January 13, 2025, W&T Offshore, Inc. made a significant move by announcing the commencement of a cash tender offer and consent solicitation. The company disclosed these activities through a press release, intending to conduct a Tender Offer for all its outstanding 11.750% Senior Second Lien Notes due 2026. This action is contingent upon specific conditions, which involve issuing and selling $350 million in aggregate principal amount of senior second lien notes due 2029.

Aligned with the Tender Offer, W&T Offshore is concurrently seeking consents from holders of the 2026 Senior Second Lien Notes. The objective of this Consent Solicitation is to adopt proposed amendments that would eliminate a substantial portion of the restrictive covenants, along with various events of default and related provisions found in the indenture governing the 2026 Senior Second Lien Notes.

It is expected that on January 28, 2025, provided that the net proceeds from the proposed offering of Notes are received, the company will issue a conditional notice of redemption for any remaining 2026 Senior Second Lien Notes post the completion or conclusion of the Tender Offer and Consent Solicitation. The potential conditional notice of redemption may include a call for the redemption of any remaining Notes by August 1, 2025. This redemption is in accordance with the optional redemption provision outlined in the Indenture, pursuant to which the 2026 Senior Second Lien Notes were originally issued.

As stated in the disclosed information, this Current Report on Form 8-K and the attached press release, which provides detailed insights into the Tender Offer and Consent Solicitation, contain forward-looking statements. The company highlighted that these statements are exposed to risks and uncertainties, some of which are beyond its control. While the company believes that the outlined plans are reasonable, it also emphasizes that there is no assurance of the successful realization of these intentions.

This Current Report, along with the attached press release, has been furnished in accordance with the regulations of the Securities Exchange Act of 1934. It is noteworthy that the content in this report should not be viewed as a formal notice of redemption under the Indenture or as an offer to purchase the 2026 Senior Second Lien Notes or any other security.

The company’s interests in this transformative endeavor are overseen by various entities, with Morgan Stanley & Co. LLC serving as the dealer manager for the Tender Offer and solicitation agent for the Consent Solicitation. Individuals interested in further details regarding this announcement are encouraged to contact D.F. King & Co., Inc., the information agent and tender agent for the Tender Offer and Consent Solicitation. For a deep understanding of the Offer to Purchase, which contains crucial information guiding decisions related to the Tender Offer and Consent Solicitation, it is recommended that interested parties thoroughly review the document directly.

About W&T Offshore: W&T Offshore, Inc. operates as an independent oil and natural gas producer, actively involved in exploring, developing, and acquiring oil and natural gas properties in the Gulf of Mexico. The company holds working interests in numerous offshore fields in state and federal waters, spanning across Louisiana, Texas, Mississippi, and Alabama.

Investors and stakeholders are advised to exercise caution and conduct thorough examinations of the Offer to Purchase and associated materials before making decisions in relation to the Tender Offer and Consent Solicitation. Any uncertainty regarding the necessary actions should prompt immediate consultation with legal, tax, accounting, or financial advisors. It is highly recommended that individuals or entities with Notes held through intermediaries reach out to such entities for participation in the Offer to Purchase. The company’s communication channels are open for inquiries regarding the Tender Offer and Consent Solicitation.

This press release must be read in conjunction with the Offer to Purchase, stressing the importance of understanding all information provided before making any decisions about participation in the Tender Offer and Consent Solicitation.

For further details, individuals can contact Al Petrie, Investor Relations Coordinator, or Sameer Parasnis, Executive VP and CFO, at [email protected] and [email protected], respectively, or by phone at 713-297-8024 and 713-513-8654.

This news article, based on W&T Offshore’s recent disclosure, seeks to inform investors and interested parties about the company’s strategic financial moves and the associated opportunities and risks.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read W&T Offshore’s 8K filing here.

W&T Offshore Company Profile

W&T Offshore, Inc engages in the production, exploration, development, and acquisition of oil and natural gas properties. It focuses its operations in the Gulf of Mexico. The company was founded by Tracy W. Krohn in 1983 and is headquartered in Houston, TX.