EXCO gives final tally in discounted tender for 7½% notes, 8½% notes

By Susanna Moon

Chicago, Aug. 24 – EXCO Resources, Inc. announced the results of the oversubscribed offer for its $171,432,000 of outstanding 8½% senior notes due 2022 and $131,576,000 of outstanding 7½% senior notes due 2018.

EXCO began tendering for a capped amount of its 7½% notes and 8½% notes on July 27 and was also soliciting consents for the 8½% notes.

In the end, holders had tendered $119,299,000 of the 8½% notes and $23,475,000 of the 7½% notes, according to an 8-K filing with the Securities and Exchange Commission.

The company said it accepted for purchase $101,263,000 of the 8½% notes and none of the 7½% notes. The notes are listed in order of priority acceptance level.

The tender offer expired at 11:59 p.m. ET on Aug. 23.

The company said that, as a result of the offer being oversubscribed at the early deadline, no notes tendered afterward were accepted for purchase.

The company previously announced tenders for $117,023,000, or 68.3%, of the 8½% notes and $23.47 million, or 17.84%, of the 7½% notes as of 5 p.m. ET on Aug. 9, the early tender date.

Holders of another $25.24 million, or 14.7%, of the 8½% notes held by non-affiliates had given consents only without tendering their notes.

The company said at the time that it accepted for purchase $101,263,000 of the 8½% notes on a prorated basis and none of the 7½% notes.

The company took in the needed majority of consents to amend the 8½% notes and had executed a supplemental indenture to amend the definition of credit facilities to include debt securities as a permitted form of additional secured debt, in addition to term loans and other credit facilities currently permitted.

The amendments became operative on the early settlement date of Aug. 12.

As previously announced, the total purchase price in the tender per $1,000 principal amount was $400 for the 8½% notes and $500 for the 7½% notes. The total amount included an early premium of $45 per $1,000 principal amount of notes tendered by the early deadline.

The company will also pay accrued interest up to but excluding the payment date.

For the 8½% notes, holders could tender their notes and give consents or they could choose to just give their consents. Those who tendered their 8½% notes were deemed to consent to the proposed amendments.

The consent payment is $5 for consents delivered by 5 p.m. ET on Aug. 9, which was included in the $400 total amount.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-1862) is acting as dealer manager for the tender offer and solicitation agent for the consent solicitation, and D.F. King & Co., Inc. (dfking.com/exco, exco@dfking.com, 212 269-5550 or 800 884-5197) is the information agent, tabulation agent and tender agent.

EXCO Resources is an oil and natural gas company based in Dallas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.