EXCO Resources closes rights offering

EXCO Resources Inc.

EXCO Resources Inc. (NYSE:XCO) has closed its $273 million rights offering and related transactions under exercise commitment agreements with certain shareholders of the company.

Of the 54.5 million total shares of common stock issued, 28.2 million shares were issued in the rights offering and 19.6 million shares and 6.7 million shares were issued to affiliates of WL Ross & Co. LLC and affiliates of Hamblin Watsa Investment Counsel Ltd., respectively, under their respective investment agreements. After giving effect to the rights offering and the investment agreements, EXCO has 272,820,969 shares of common stock outstanding.

EXCO received net proceeds of $272 million, after deducting estimated expenses. The company used $28.9 million of the proceeds to fully repay indebtedness related to the asset sale requirement under the EXCO Resources credit agreement, and $243.2 million of the proceeds to repay indebtedness related to the revolving commitment under the EXCO Resources credit agreement. Elimination of the asset sale requirement reduced the interest rate on the revolving commitment by 1%.

After giving effect to the rights offering and the related transactions under the investment agreements, the available borrowing base on the revolving commitment under the EXCO Resources credit agreement is $900.0 million with $491.8 million of outstanding indebtedness and $401.4 million of unused borrowing base, net of letters of credit.

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