EXCO Resources Inc. (NYSE:XCO) has signed an agreement to sell its 25% interest in Compass Production Partners LP (the Partnership) and its 50% interest in Compass Production GP LLC (the General Partner) to an affiliate of Harbinger Group Inc. (NYSE:HRG) for $118.75 million in cash.
The effective date of the transaction is Aug. 1, and the transaction is expected to close during the fourth quarter of 2014. EXCO intends to use the proceeds to reduce the revolving commitment under EXCO’s amended and restated credit agreement. As of Sept. 30, EXCO had $222.5 million of outstanding indebtedness under the revolving commitment of the EXCO credit agreement.
Upon the closing of the sale of the Partnership, EXCO will have received cash consideration of $701.8 million from the sale of non-core assets and the rights offering of its common stock since September 30, 2013.