Exco Resources to convert all series A-1, B, C 7% cumulative preferreds, hybrid preferreds

By Jennifer Chiou

New York, July 16 - Exco Resources, Inc. announced the automatic conversion of all of its series A-1, series B and series C 7% cumulative convertible perpetual preferred stock and its series A-1 hybrid preferred stock.

The preferreds will be automatically converted into common stock on Friday.

Prior to exercising this option, the volume-weighted average price of the Exco stock must be equal to or exceed $33.25 for at least 20 trading days in any period of 30 consecutive trading days, and on Friday, 526.3 Exco shares will be issued upon conversion of each preferred, plus cash in lieu of any fractional shares.

Currently, there are 199,900 preferreds outstanding, which would result in the issue of 105.2 million Exco shares upon conversion.

Additionally, preferred holders will receive a cash payment for any accrued dividends, which amount to about $12.8 million.

Exco noted that the conversion of all outstanding preferreds will eliminate its obligation to pay quarterly cash dividends of $35 million.

Continental Stock Transfer and Trust Co. is the conversion agent (212 509-4000). Additional information is available from Exco chairman Douglas H. Miller or president Stephen F. Smith (214 368-2084).

Dallas-based Exco is an oil and natural gas exploration, acquisition, development and production company.

© 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.