Published on 4/11/2014 in the Prospect News High Yield Daily.
New Issue: EXCO sells upsized $500 million eight-year notes at par to yield 8½%
By Paul A. Harris
Portland, Ore., April 11 - EXCO Resources, Inc. priced an upsized $500 million issue of eight-year senior notes (B3/CCC+/) at par to yield 8½% on Friday, according to a market source.
The deal was upsized from $400 million.
The yield printed 25 basis points higher than the wide end of the 8% to 8¼% yield talk.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch and BMO Capital Markets were the joint bookrunners.
The Dallas-based oil and gas company plans to use the proceeds to repay a $297.8 million term loan and a portion of a revolver used to fund the acquisition of the Chesapeake Properties in July 2013 and for general corporate and working capital purposes.
Issuer: | EXCO Resources, Inc.
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Amount: | $500 million, increased from $400 million
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Maturity: | April 15, 2022
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Securities: | Senior notes
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Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, BMO Capital Markets
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Senior co-managers: | Credit Suisse Securities (USA) LLC, ING, Natixis Securities, UBS Investment Bank
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Co-managers: | Capital One Securities, CIT Capital Securities, Deutsche Bank Securities Inc., Goldman Sachs & Co.
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Coupon: | 8½%
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Price: | Par
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Yield: | 8½%
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Spread: | 611 bps
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Price talk: | 8% to 8¼%
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First call: | April 15, 2017 at 106.375
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Equity clawback: | 35% at 108.5 until April 15, 2017
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Trade date: | April 11
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Settlement date: | April 16
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Ratings: | Moody's: B3
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| Standard & Poor's: CCC+
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Distribution: | SEC registered
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Marketing: | Roadshow
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