EXCO Resources (XCO) closed its Appalachian joint venture with BG Group. The total purchase price paid by BG Group to EXCO at the closing was $835.2 million, which is subject to customary post-closing purchase price adjustments.
Cash proceeds received at the closing were used to reduce the outstanding balance under EXCO’s credit facility, to fund EXCO’s share of an operating account for the JV, to pay transaction costs and expenses and for other general corporate purposes. The borrowing base under EXCO’s credit facility was reduced from $1.3 billion to $1.2 billion as a result of the consummation of this transaction.
EXCO was advised by Goldman, Sachs & Co. in this transaction.
EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, development and production company headquartered in Dallas, Texas with principal operations in East Texas, North Louisiana, Appalachia, and West Texas.